Expedition Funds Guiding Your Way 2000 Semi-Annual Report
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[LOGO OMITTED]
Table of Contents
Letter to Our Shareholders ............................. 1
Statement of Net Assets ................................ 3
Statement of Operations ................................ 38
Statement of Changes in Net Assets ..................... 40
Financial Highlights ................................... 42
Notes to Financial Statements .......................... 44
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Shares of the Expedition Funds are not deposits of or obligations of, or
guaranteed or endorsed by Compass Bank, Compass Bancshares, Inc. or any of their
affiliates, or any bank, and are not obligations of, guaranteed by or insured by
the U.S. Government, the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other government agency.
An investment in shares of the Funds involves investment risk, including the
possible loss of all or a portion of the principal invested, and the investment
return and value of shares of the Funds will fluctuate so that an investment,
when liquidated, may be worth more or less than the original cost.
Money market funds are neither insured nor guaranteed by the U.S. Government and
there can be no assurance that the Expedition Money Market Fund or Tax-Free
Money Market Fund will be able to maintain a stable net asset value of $1.00 per
share.
Compass Bank serves as investment advisor and custodian to the Expedition Funds,
and Compass Bank and various of its affiliates may provide various services to
the Funds, for which investment advisory, custodian and other services Compass
Bank and/or such other affiliates are entitled to receive compensation.
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<PAGE>
LETTER TO OUR SHAREHOLDERS
Dear Shareholder:
During the six-month period ended April 30, 2000, the Expedition Funds continued
to perform well, despite challenging conditions in the financial markets. As
always during times of volatility, we remained true to our investment strategies
and encouraged our shareholders to do the same.
MARKET OVERVIEW
Interest rate news dominated the markets during the period, as the Federal
Reserve Board raised short-term rates no fewer than three times for a total
increase of three quarters of one percent. In addition, the Fed raised interest
rates by another 50 basis points once again in mid-May.
The Fed continues to tighten the monetary screws on the U.S. economy in an
effort to stave off a resurgence of inflation. At times, Fed Chairman Alan
Greenspan has also implied that dampening the exuberance of the stock market may
also be part of the central bank's agenda.
For most of the period, the equity markets blithely ignored the Fed's efforts,
continuing to push prices and valuations to historic levels. At the end of
March, however, a sudden loss of confidence finally caused the markets to take a
more sober view of the future. Technology issues and internet stocks experienced
sharp declines. Even many "old economy" issues were caught in the wave of
selling pressure after showing good strength for much of the past six months.
In the bond market, rising rates are especially unfavorable as they make
existing securities relatively less attractive than higher-yielding new issues.
As a result, bonds were skittish throughout the period, particularly in advance
of each Fed meeting.
Perhaps the only sector of the market that welcomes higher rates is the money
market sector. Here, investors continued to enjoy generally higher yields
without the volatility associated with longer-term fixed income investments.
STRONG GROWTH AND PERFORMANCE
For the Expedition Funds, the period was notable for good relative performance
and continued growth in assets, which rose from $888 million at October 31,
1999, to $1,145 billion at April 30, 2000.
But the biggest news for our fund family was the introduction of two important
new portfolios.
APRIL 30, 2000 1
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LETTER TO OUR SHAREHOLDERS (CONCLUDED)
The new Expedition Equity Income Fund seeks long-term growth of capital, with an
emphasis on current income. This Fund is appropriate for income-oriented equity
fund investors. The new Expedition Tax-Free Investment Grade Bond Fund seeks
current income that is exempt from Federal income taxes and is appropriate for
tax-sensitive, income-oriented investors.
In addition, we have changed the name of our taxable bond fund, which is now
called the Expedition Investment Grade Bond Fund. This change reflects the
Fund's emphasis on government and corporate securities of the highest quality.
With the addition of our new portfolios, investors now have six Expedition Funds
to choose from, making it easier than ever to create an investment strategy that
suits their unique goals.
CONSISTENCY IN THE FACE OF CHANGE
The market's erratic performance over the past few months has led to a
predictable flow of media reports announcing the end of the long-running bull
market and the beginning of a new and less promising era.
And while there is no telling which way the markets will move in the next days,
months, or years, experience has shown again and again that those who keep
short-term market gyrations in perspective are generally best positioned for
long-term success.
It is clear from the continued growth of the Expedition Funds that our
shareholders understand this market wisdom and are committed to the long-term
approach that has been the hallmark of our funds since their inception. We thank
you for being among those farsighted investors and will continue to apply our
prudent investment strategies in the pursuit of your goals.
Sincerely,
/S/ SIGNATURE OMITTED
Jan Koenig
CHIEF INVESTMENT OFFICER
2 APRIL 30, 2000
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EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
COMMON STOCKS - 99.7%
AIRLINES - 2.1%
Southwest Airlines 406,000 $ 8,805
-----------------------------------------------------------------------------
TOTAL AIRLINES 8,805
-----------------------------------------------------------------------------
AUTOMOTIVE - 1.9%
Ford Motor 145,000 7,930
-----------------------------------------------------------------------------
TOTAL AUTOMOTIVE 7,930
-----------------------------------------------------------------------------
BANKS - 4.3%
J.P. Morgan 79,970 10,266
Mellon Financial 256,000 8,224
-----------------------------------------------------------------------------
TOTAL BANKS 18,490
-----------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 4.7%
Omnicom Group 122,999 11,201
Univision Communications* 81,000 8,849
-----------------------------------------------------------------------------
TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 20,050
-----------------------------------------------------------------------------
COMPUTERS & SERVICES - 12.2%
EMC* 98,000 13,616
IBM 111,000 12,390
Siebel Systems* 100,005 12,288
Sun Microsystems* 150,000 13,791
-----------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 52,085
-----------------------------------------------------------------------------
COSMETICS/TOILETRIES - 2.2%
Allergan 155,000 9,126
-----------------------------------------------------------------------------
TOTAL COSMETICS/TOILETRIES 9,126
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 3.0%
Citigroup 215,000 12,779
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 12,779
-----------------------------------------------------------------------------
DIVERSIFIED MANUFACTURING - 6.3%
General Electric 95,000 14,939
Tyco International 257,000 11,806
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED MANUFACTURING 26,745
-----------------------------------------------------------------------------
DRUGS - 8.6%
Bristol-Myers Squibb 148,000 7,761
Medimmune* 54,000 8,637
Merck 137,000 9,521
Pfizer 260,000 10,952
-----------------------------------------------------------------------------
TOTAL DRUGS 36,871
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 3
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 1.7%
Calpine* 80,005 $ 7,320
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 7,320
-----------------------------------------------------------------------------
ELECTRONIC COMPONENTS - 2.3%
Solectron* 206,002 9,643
-----------------------------------------------------------------------------
TOTAL ELECTRONIC COMPONENTS 9,643
-----------------------------------------------------------------------------
ENTERTAINMENT - 2.5%
Time Warner 120,000 10,792
-----------------------------------------------------------------------------
TOTAL ENTERTAINMENT 10,792
-----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 3.0%
Anheuser Busch 182,000 12,842
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 12,842
-----------------------------------------------------------------------------
FIBER OPTICS - 2.1%
JDS Uniphase* 87,000 9,021
-----------------------------------------------------------------------------
TOTAL FIBER OPTICS 9,021
-----------------------------------------------------------------------------
GAS/NATURAL GAS - 1.6%
Enron 100,000 6,969
-----------------------------------------------------------------------------
TOTAL GAS/NATURAL GAS 6,969
-----------------------------------------------------------------------------
INSURANCE - 5.0%
American International Group 97,000 10,640
Marsh & McLennan Companies 110,000 10,842
-----------------------------------------------------------------------------
TOTAL INSURANCE 21,482
-----------------------------------------------------------------------------
LUMBER & WOOD PRODUCTS - 1.4%
Georgia-Pacific 165,955 6,099
-----------------------------------------------------------------------------
TOTAL LUMBER & WOOD PRODUCTS 6,099
-----------------------------------------------------------------------------
METALS-ALUMINUM - 2.0%
Alcoa 132,000 8,563
-----------------------------------------------------------------------------
TOTAL METALS-ALUMINUM 8,563
-----------------------------------------------------------------------------
NETWORKING PRODUCTS - 3.6%
Cisco Systems* 224,000 15,530
-----------------------------------------------------------------------------
TOTAL NETWORKING PRODUCTS 15,530
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OIL FIELD SERVICES - 1.9%
Schlumberger Limited 103,000 7,886
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TOTAL OIL FIELD SERVICES 7,886
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The accompanying notes are an integral part of the financial statements.
4 APRIL 30, 2000
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
PETROLEUM REFINING - 3.7%
Coastal 125,000 $ 6,273
Exxon Mobil 124,000 9,633
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 15,906
-----------------------------------------------------------------------------
RETAIL - 5.3%
Target 141,000 9,385
Wal-Mart Stores 240,000 13,290
-----------------------------------------------------------------------------
TOTAL RETAIL 22,675
-----------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 6.6%
Applied Materials* 81,000 8,247
Motorola 90,999 10,835
Stmicroelectronics ADR 47,000 8,915
-----------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 27,997
-----------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION - 11.7%
Comverse Technology* 106,000 9,454
Nextel Communications, Cl A* 77,000 8,427
Nortel Networks 130,000 14,723
Telefonos de Mexico ADR 143,000 8,410
Vodafone Airtouch ADR 185,000 8,695
-----------------------------------------------------------------------------
TOTAL TELEPHONES & TELECOMMUNICATION 49,709
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(COST $333,578) 425,315
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 5
<PAGE>
EXPEDITION EQUITY FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE AMT. VALUE
DESCRIPTION (000) (000)
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 0.3%
J.P. Morgan, Inc., 5.67%, dated 04/28/00, matures
05/01/00, repurchase price $1,392,000
(collateralized by U.S. Treasury Bond,
par value $1,128,000, 8.50%, matures
02/15/20: market value $1,419,932) $1,392 $ 1,392
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $1,392) 1,392
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.0%
(COST $334,970) 426,707
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 0.0% 40
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
30,728,690 outstanding shares of beneficial interest 272,738
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on
537,611 outstanding shares of beneficial interest 6,179
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on
959,098 outstanding shares of beneficial interest 12,087
Distributions in excess of net investment income (312)
Accumulated net realized gain on investments 44,318
Net unrealized appreciation on investments 91,737
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TOTAL NET ASSETS--100.0% $426,747
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INSTITUTIONAL SHARES $13.25
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INVESTMENT SHARES - CLASS A $13.20
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $13.75
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE--
INVESTMENT SHARES - CLASS B $13.03
-----------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.00%.
* Non-income producing security
ADR--American Depository Receipt
Cl--Class
The accompanying notes are an integral part of the financial statements.
6 APRIL 30, 2000
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EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
COMMON STOCKS - 97.8%
AIRCRAFT - 3.0%
Lockheed Martin 43,000 $ 1,070
-----------------------------------------------------------------------------
TOTAL AIRCRAFT 1,070
-----------------------------------------------------------------------------
BANKS - 8.4%
Bank of New York 24,000 985
Bank One 23,580 719
Chase Manhattan 8,400 605
PNC Financial Services Group 16,217 707
-----------------------------------------------------------------------------
TOTAL BANKS 3,016
-----------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING - 4.8%
AT&T-Liberty Media, Cl A* 12,695 634
CBS* 18,600 1,093
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TOTAL BROADCASTING, NEWSPAPERS & ADVERTISING 1,727
-----------------------------------------------------------------------------
CHEMICALS - 2.8%
Dow Chemical 8,735 987
-----------------------------------------------------------------------------
TOTAL CHEMICALS 987
-----------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT - 2.0%
Philips Electronics* 15,720 702
-----------------------------------------------------------------------------
TOTAL COMMUNICATIONS EQUIPMENT 702
-----------------------------------------------------------------------------
COMPUTERS & SERVICES - 2.4%
Sun Microsystems* 9,510 874
-----------------------------------------------------------------------------
TOTAL COMPUTERS & SERVICES 874
-----------------------------------------------------------------------------
DRUGS - 2.8%
Merck & Company 14,450 1,004
-----------------------------------------------------------------------------
TOTAL DRUGS 1,004
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 7.1%
FirstEnergy 26,830 682
FPL Group 17,000 768
Southern 42,955 1,071
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TOTAL ELECTRICAL SERVICES 2,521
-----------------------------------------------------------------------------
FINANCIAL SERVICES - 10.7%
Alliance Capital Management Holding 25,640 1,149
American Express 7,600 1,140
Ing Cap Funding Trust 39,200 852
Morgan Stanley Dean Witter 8,980 689
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TOTAL FINANCIAL SERVICES 3,830
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The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 7
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION SHARES (000)
-----------------------------------------------------------------------------
GAS/NATURAL GAS - 2.5%
Williams Companies 24,250 $ 905
-----------------------------------------------------------------------------
TOTAL GAS/NATURAL GAS 905
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INSURANCE - 5.6%
American International Group 9,625 1,056
Marsh & McLennan 9,540 940
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TOTAL INSURANCE 1,996
-----------------------------------------------------------------------------
MACHINERY - 3.1%
General Electric 7,000 1,101
-----------------------------------------------------------------------------
TOTAL MACHINERY 1,101
-----------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES - 2.6%
Baxter International 14,140 921
-----------------------------------------------------------------------------
TOTAL MEDICAL PRODUCTS & SERVICES 921
-----------------------------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES - 2.2%
Automatic Data Processing 14,300 770
-----------------------------------------------------------------------------
TOTAL MISCELLANEOUS BUSINESS SERVICES 770
-----------------------------------------------------------------------------
MISCELLANEOUS MANUFACTURING - 5.5%
Alcoa 13,360 867
Minnesota Mining & Manufacturing 12,530 1,084
-----------------------------------------------------------------------------
TOTAL MISCELLANEOUS MANUFACTURING 1,951
-----------------------------------------------------------------------------
PETROLEUM REFINING - 9.0%
BP Amoco PLC ADR 20,564 1,049
Exxon Mobil 13,659 1,061
Royal Dutch Petroleum ADR 19,310 1,108
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 3,218
-----------------------------------------------------------------------------
REITS - 2.3%
Crescent Real Estate Equities, REIT 47,540 814
-----------------------------------------------------------------------------
TOTAL REITS 814
-----------------------------------------------------------------------------
RETAIL - 2.9%
Wal-Mart Stores 18,730 1,037
-----------------------------------------------------------------------------
TOTAL RETAIL 1,037
-----------------------------------------------------------------------------
SEMI-CONDUCTORS/INSTRUMENTS - 2.2%
Intel 6,360 807
-----------------------------------------------------------------------------
TOTAL SEMI-CONDUCTORS/INSTRUMENTS 807
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
8 APRIL 30, 2000
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
SHARES/FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATION - 12.9%
AT&T 17,640 $ 824
Bell Atlantic 17,200 1,019
Deutsche Telekom AG ADR* 14,465 976
Motorola 7,765 925
Nokia ADR 15,420 877
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TOTAL TELEPHONES & TELECOMMUNICATION 4,621
-----------------------------------------------------------------------------
WHOLESALE - 3.0%
Sysco 28,700 1,080
-----------------------------------------------------------------------------
TOTAL WHOLESALE 1,080
-----------------------------------------------------------------------------
TOTAL COMMON STOCKS
(COST $32,895) 34,952
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 2.6%
J.P. Morgan, Inc., 5.67%, dated 04/28/00, matures
05/01/00, repurchase price $935,000
(collateralized by U.S. Treasury Bond,
par value $758,000, 8.50%, matures
02/15/20: market value $954,174) $935 935
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TOTAL REPURCHASE AGREEMENT
(COST $935) 935
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.4%
(COST $33,830) 35,887
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OTHER ASSETS AND LIABILITIES, NET - (0.4%) (158)
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 9
<PAGE>
EXPEDITION EQUITY INCOME FUND
STATEMENT OF NET ASSETS (UNAUDITED)
VALUE
DESCRIPTION (000)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
3,456,986 outstanding shares of beneficial interest $31,906
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on
3,021 outstanding shares of beneficial interest 30
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on
12,359 outstanding shares of beneficial interest 127
Undistributed Net Investment income 46
Accumulated net realized gain on investments 1,563
Net unrealized appreciation on investments 2,057
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TOTAL NET ASSETS--100.0% $35,729
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NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INSTITUTIONAL SHARES $10.29
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE
PER SHARE -- INVESTMENT SHARES - CLASS A $10.29
MAXIMUM OFFERING PRICE PER SHARE --
INVESTMENT SHARES - CLASS A (1) $10.72
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE --
INVESTMENT SHARES - CLASS B $10.28
-----------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.00%.
* Non-income producing security
Cl -- Class
ADR -- American Depository Receipt
REIT -- Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
10 APRIL 30, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
ASSET-BACKED SECURITIES - 3.3%
MBNA Master Credit Card Trust,
Ser 1997-I, Cl A (A)
6.550%, 01/15/07 $ 3,000 $ 2,912
Standard Credit Card Master Trust,
Ser 1994-2, Cl A (A)
7.250%, 04/07/08 1,725 1,696
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TOTAL ASSET-BACKED SECURITIES
(COST $4,744) 4,608
-----------------------------------------------------------------------------
CORPORATE BONDS - 25.4%
AUTOMOTIVE - 1.8%
DaimlerChrysler
7.400%, 01/20/05 2,000 1,985
General Motors
6.250%, 05/01/05 500 477
-----------------------------------------------------------------------------
TOTAL AUTOMOTIVE 2,462
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BANKS - 2.0%
NationsBank
6.375%, 05/15/05 1,000 939
Norwest Corporation MTN
6.875%, 08/08/06 1,000 961
Wells Fargo
6.625%, 07/15/04 1,000 968
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TOTAL BANKS 2,868
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BROKER/DEALERS - 2.0%
Merrill Lynch
6.375%, 10/15/08 1,000 904
Morgan Stanley Dean Witter
5.625%, 01/20/04 2,000 1,870
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TOTAL BROKER/DEALERS 2,774
-----------------------------------------------------------------------------
CONSUMER NON-DURABLE - 1.0%
Archer Daniels Midland
6.250%, 05/15/03 1,500 1,449
-----------------------------------------------------------------------------
TOTAL CONSUMER NON-DURABLE 1,449
-----------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES - 5.0%
Ford Motor Credit
7.500%, 03/15/05 3,500 3,456
7.750%, 03/15/05 500 499
General Electric Capital
7.375%, 01/19/10 3,000 3,004
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCIAL SERVICES 6,959
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 11
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 2.0%
Georgia Power
5.500%, 12/01/05 $ 2,000 $ 1,810
Southern California Edison
6.375%, 01/15/06 1,000 936
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 2,746
-----------------------------------------------------------------------------
ENTERTAINMENT - 1.4%
Walt Disney
6.750%, 03/30/06 2,000 1,943
-----------------------------------------------------------------------------
TOTAL ENTERTAINMENT 1,943
-----------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO - 0.0%
General Mills MTN
8.080%, 11/18/03 60 61
-----------------------------------------------------------------------------
TOTAL FOOD, BEVERAGE & TOBACCO 61
-----------------------------------------------------------------------------
PETROLEUM REFINING - 0.7%
BP Amoco
6.250%, 10/15/04 1,000 960
-----------------------------------------------------------------------------
TOTAL PETROLEUM REFINING 960
-----------------------------------------------------------------------------
RETAIL - 6.3%
Dillard Department Stores
7.150%, 09/01/02 2,025 1,898
Wal-Mart Stores
6.500%, 06/01/03 1,520 1,490
7.500%, 05/15/04 2,500 2,516
6.875%, 08/10/09 3,000 2,891
-----------------------------------------------------------------------------
TOTAL RETAIL 8,795
-----------------------------------------------------------------------------
TELEPHONE SERVICES - 3.2%
AT&T
5.625%, 03/15/04 2,000 1,878
6.000%, 03/15/09 3,010 2,690
-----------------------------------------------------------------------------
TOTAL TELEPHONE SERVICES 4,568
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $36,782) 35,585
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
12 APRIL 30, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED BONDS - 8.8%
FHLMC, Gold Pool #E00413
6.500%, 01/01/11 $ 2,004 $ 1,919
FHLMC, Gold Pool #E00475
7.500%, 02/01/12 852 848
FHLMC, Gold Pool #E00485
7.000%, 05/01/12 1,656 1,620
FHLMC, Gold Pool #E00532
6.500%, 02/01/13 1,410 1,351
FHLMC, Gold Pool #E00543
6.000%, 04/01/13 2,043 1,917
FHLMC, Gold Pool #E00584
6.000%, 11/01/13 3,079 2,889
FHLMC, Gold Pool #N98262
5.000%, 03/01/06 1,937 1,769
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED BONDS
(COST $12,941) 12,313
-----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS - 12.9%
FHLB Notes
6.789%, 02/05/07 1,000 972
FHLMC Notes
5.950%, 01/19/06 500 469
6.510%, 01/08/07 510 489
6.835%, 01/23/07 2,000 1,949
6.800%, 03/19/07 1,000 972
5.125%, 10/15/08 1,000 861
5.750%, 03/15/09 2,500 2,244
6.625%, 09/15/09 4,515 4,306
7.000%, 03/15/10 3,000 2,940
FNMA Notes
6.375%, 06/15/09 3,062 2,871
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS
(COST $18,815) 18,073
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 13
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
U.S. GOVERNMENT OBLIGATIONS - 48.2%
U.S. Treasury Notes
5.625%, 11/30/00 $ 1,000 $ 996
6.625%, 06/30/01 3,000 3,005
7.500%, 11/15/01 2,000 2,023
6.250%, 01/31/02 3,500 3,475
7.500%, 05/15/02 4,000 4,061
5.500%, 05/31/03 4,500 4,364
5.750%, 08/15/03 4,500 4,389
6.000%, 08/15/04 4,000 3,920
7.250%, 08/15/04 3,000 3,074
5.875%, 11/15/04 1,000 974
6.500%, 05/15/05 2,500 2,498
6.500%, 08/15/05 2,500 2,495
5.875%, 11/15/05 2,000 1,940
5.625%, 02/15/06 1,500 1,439
6.875%, 05/15/06 1,000 1,018
7.000%, 07/15/06 2,500 2,560
6.500%, 10/15/06 3,000 2,998
6.250%, 02/15/07 3,250 3,207
6.125%, 08/15/07 5,500 5,394
5.625%, 05/15/08 4,600 4,376
5.500%, 05/15/09 3,000 2,829
6.000%, 08/15/09 5,750 5,625
6.500%, 02/15/10 1,000 1,020
-----------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT OBLIGATIONS
(COST $68,805) 67,680
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.5%
J.P. Morgan, Inc.,
5.67%, dated 04/28/00, matures
05/01/00, repurchase price $4,906,000 (collateralized
by U.S. Treasury Bond, par value $3,976,000, 8.50%,
matures 02/15/20: market value $5,005,008)
5.670%, 05/01/00 4,906 4,906
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $4,906) 4,906
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 102.1%
(COST $146,993) 143,165
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (2.1%) (2,948)
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
14 APRIL 30, 2000
<PAGE>
EXPEDITION INVESTMENT GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
------------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional shares (unlimited
authorization -- no par value) based on
14,109,541 outstanding shares of beneficial interest $137,471
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on
666,695 outstanding shares of beneficial interest 10,837
Portfolio Capital of Investment Shares - Class B (unlimited
authorization -- no par value) based on
21,992 outstanding shares of beneficial interest 217
Undistributed Net Investment income 2
Accumulated net realized loss on investments (4,482)
Net unrealized depreciation on investments (3,828)
-----------------------------------------------------------------------------
TOTAL NET ASSETS--100.0% $140,217
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL SHARES $9.48
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INVESTMENT SHARES - CLASS A $9.47
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE--
INVESTMENT SHARES - CLASS A (1) $9.86
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INVESTMENT SHARES - CLASS B $9.48
-----------------------------------------------------------------------------
(1)The offering price is calculated by dividing the net asset value by 1minus
the maximum sales charge of 4.00%.
(A)Callable Security -- The call date is shown as the maturity date on the
Statement of Net Assets.
Cl -- Class
FHLB -- Federal Home Loan Mortgage Bank
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
Ser -- Series
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 15
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MUNICIPAL BONDS - 97.4%
ALABAMA - 14.2%
Birmingham GO, Capital Improvement, Ser B
5.000%, 10/01/10 $ 500 $ 489
Birmingham, Special Care Facilities Funding
Authority RB, Childrens Hospital, MBIA
5.250%, 06/01/12 1,040 1,005
Alabama State Municipal Electric Authority
Power Supply RB, MBIA
5.750%, 09/01/01 500 507
Alabama State Public School &
College Authority RB
5.000%, 11/01/12 1,000 970
Huntsville, Warrants GO
4.100%, 11/01/08 1,000 906
Tuscaloosa, Warrants GO
5.650%, 01/01/17 1,000 987
Mobile, Water & Sewer RB, AMBAC
5.000%, 01/01/09 1,000 979
Montgomery, Waterworks & Sanitation
Sewer Board RB, Ser B
5.850%, 03/01/03 560 572
5.900%, 09/01/04 500 516
Tuscaloosa County GO
5.500%, 10/01/03 500 507
Shelby County, Board of Education
School Warrants, AMBAC
5.500%, 02/01/08 1,000 1,019
Alabama State Water Pollution
Control Authority RB,
Revolving Funding Loan, AMBAC
5.000%, 08/15/11 1,000 966
Alabama State Warrants GO
5.100%, 10/01/09 1,000 989
University of Alabama RB, MBIA
5.000%, 10/01/14 250 233
University of Alabama RB, Series C, MBIA
4.900%, 10/01/07 1,000 980
University of Southern Alabama,
Hospital & Auxiliary
RB, AMBAC (prerefunded)
7.000%, 05/15/00 1,000 1,001
-----------------------------------------------------------------------------
TOTAL ALABAMA 12,626
-----------------------------------------------------------------------------
ARIZONA - 1.2%
Tucson GO, Ser 1994-D
6.250%, 07/01/14 1,000 1,049
-----------------------------------------------------------------------------
TOTAL ARIZONA 1,049
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
16 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
CALIFORNIA - 2.1%
California State GO
5.250%, 03/01/13 $1,000 $ 994
California State GO, MBIA
5.000%, 02/01/18 1,000 902
-----------------------------------------------------------------------------
TOTAL CALIFORNIA 1,896
-----------------------------------------------------------------------------
COLORADO - 3.4%
Denver, City and County GO, Ser B
5.625%, 08/01/07 1,000 1,030
Arapahoe County, Colorado
School District #005 Cherry Creek GO
5.500%, 12/15/12 1,000 1,011
Colorado State Water Resource & Power
Development Authority RB, Ser A
5.250%, 09/01/15 1,000 971
-----------------------------------------------------------------------------
TOTAL COLORADO 3,012
-----------------------------------------------------------------------------
FLORIDA - 6.2%
Jacksonville, Electric Authority
RB Electric System Series 3A
5.800%, 10/01/17 1,000 1,006
Jacksonville, Electric Authority RB,
St John River Project Issue 2, Series 10
5.500%, 10/01/09 1,000 1,010
Tallahassee, Consolidated Utility System RB
5.625%, 10/01/14 1,000 1,003
Palm Beach County GO, Ser A
5.450%, 08/01/13 1,000 1,001
Florida State Right of Way GO, Ser B
5.500%, 07/01/11 1,000 1,015
Florida State Board of Education
Capital Outlay GO, Ser A
5.650%, 01/01/09 500 511
-----------------------------------------------------------------------------
TOTAL FLORIDA 5,546
-----------------------------------------------------------------------------
GEORGIA - 3.2%
Fulton County, School District GO
5.000%, 01/01/06 1,000 995
Georgia State GO, Series B
6.000%, 03/01/12 1,000 1,061
Georgia State Municipal Electric Authority
Power RB, Series Y
6.300%, 01/01/06 730 762
-----------------------------------------------------------------------------
TOTAL GEORGIA 2,818
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 17
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
HAWAII - 1.7%
Hawaii State GO, Ser CO, FGIC
6.000%, 03/01/08 $1,000 $ 1,049
Hawaii State GO, Ser CR, MBIA
5.250%, 04/01/11 500 492
-----------------------------------------------------------------------------
TOTAL HAWAII 1,541
-----------------------------------------------------------------------------
ILLINOIS - 4.2%
Arlington Heights GO
5.650%, 12/01/14 750 752
Du Page, Water Commission RB
5.250%, 05/01/14 500 477
Cook County GO, Ser B, MBIA
5.375%, 11/15/12 1,000 990
Illinois State GO
5.875%, 06/01/13 500 507
Illinois State Sales Tax RB,
Unrefunded Balance, Ser O
6.000%, 06/15/18 1,000 1,002
-----------------------------------------------------------------------------
TOTAL ILLINOIS 3,728
-----------------------------------------------------------------------------
INDIANA - 1.4%
Indiana State Health Facilities
Financing Authority RB, Methodist
Hospital Project, Series A, AMBAC
5.750%, 09/01/15 500 508
Indiana State Transportation
Finance Authority
Highway RB, Series A
5.250%, 06/01/09 700 697
-----------------------------------------------------------------------------
TOTAL INDIANA 1,205
-----------------------------------------------------------------------------
IOWA - 1.1%
Cedar Rapids GO
5.000%, 06/01/10 1,000 980
-----------------------------------------------------------------------------
TOTAL IOWA 980
-----------------------------------------------------------------------------
MASSACHUSETTS - 3.5%
Massachusetts State GO, Ser B (A) (B) (C)
5.000%, 09/01/16 1,000 1,000
Massachusetts State Consolidated
Loan GO, Ser A
6.000%, 02/01/13 1,000 1,042
6.000%, 02/01/14 1,000 1,039
-----------------------------------------------------------------------------
TOTAL MASSACHUSETTS 3,081
-----------------------------------------------------------------------------
MICHIGAN - 1.1%
Lansing, Board Water & Light Supply & Electric
Utility System RB, Ser A
4.900%, 07/01/11 1,000 967
-----------------------------------------------------------------------------
TOTAL MICHIGAN 967
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
18 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MINNESOTA - 0.6%
Minnesota State Public Facilities Authority
Water Pollution Control RB
6.000%, 03/01/09 $ 500 $ 517
-----------------------------------------------------------------------------
TOTAL MINNESOTA 517
-----------------------------------------------------------------------------
NEBRASKA - 1.2%
Omaha, Public Power District Electric RB, Ser D
5.250%, 02/01/13 700 682
5.300%, 02/01/16 410 394
-----------------------------------------------------------------------------
TOTAL NEBRASKA 1,076
-----------------------------------------------------------------------------
NEW JERSEY - 1.1%
New Jersey State GO, Ser F
5.500%, 08/01/11 1,000 1,026
-----------------------------------------------------------------------------
TOTAL NEW JERSEY 1,026
-----------------------------------------------------------------------------
NEW YORK - 5.5%
Brookhaven GO
5.500%, 10/01/13 500 501
Triborough, Bridge & Tunnel Authority RB (A)
5.250%, 01/01/17 1,000 921
New York State Environmental Facilities
Pollution Control RB (A)
5.875%, 06/15/14 1,000 1,018
New York State GO, Ser C, MBIA
5.375%, 11/15/17 1,000 950
New York State GO, Series A
5.875%, 03/15/15 1,000 1,011
New York State GO, Series F
5.250%, 09/15/13 500 486
-----------------------------------------------------------------------------
TOTAL NEW YORK 4,887
-----------------------------------------------------------------------------
OHIO - 2.9%
Columbus GO, Ser 2
5.750%, 06/15/15 1,000 1,020
5.500%, 06/15/16 1,000 988
Ohio State GO
6.200%, 08/01/12 500 533
-----------------------------------------------------------------------------
TOTAL OHIO 2,541
-----------------------------------------------------------------------------
OREGON - 1.1%
Oregon State Alternative Energy Project GO
5.800%, 07/01/07 1,000 1,026
-----------------------------------------------------------------------------
TOTAL OREGON 1,026
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 19
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
SOUTH CAROLINA - 1.6%
Lancaster County, School District GO, FSA
5.100%, 03/01/15 $1,000 $ 943
South Carolina State Housing
Finance & Development
Authority Mortgage RB, FHA
6.200%, 07/01/09 500 513
-----------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 1,456
-----------------------------------------------------------------------------
TENNESSEE - 1.8%
Memphis, Sanitation Sewer System RB
5.750%, 10/01/14 500 503
Shelby County GO, Ser A
5.250%, 03/01/11 600 595
Tennessee State GO, Ser A
5.700%, 03/01/14 500 518
-----------------------------------------------------------------------------
TOTAL TENNESSEE 1,616
-----------------------------------------------------------------------------
TEXAS - 26.4%
Arlington, Permanent Improvement GO
5.250%, 08/15/16 400 382
Austin, Independent School District GO
5.000%, 08/01/11 500 486
Austin, Independent School District GO (A)
5.750%, 08/01/15 1,000 1,005
Comal, Independent School District GO (A)
5.500%, 02/01/09 750 758
Dallas GO
5.250%, 02/15/14 1,000 974
Dallas, Independent School District GO (A)
5.250%, 08/15/12 1,000 986
El Paso GO, AMBAC
5.000%, 08/15/08 500 494
Fort Bend, Independent School District GO (A)
5.800%, 02/15/08 975 1,005
Fort Worth, Certificates GO
5.750%, 03/01/16 1,000 1,002
5.625%, 03/01/13 1,000 1,006
Garland, Independent School District GO,
Capital Appreciation (Zero Coupon)
0.000%, 02/15/09 1,200 741
Garland, Independent School District GO
5.400%, 02/15/13 475 472
Hallsville, Independent School District GO
6.500%, 02/15/09 795 851
Hallsville, Independent School District GO (A)
5.250%, 02/15/12 560 552
The accompanying notes are an integral part of the financial statements.
20 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
TEXAS (CONTINUED)
Houston, Community College System RB,
Student Fee Project, AMBAC
5.000%, 04/15/12 $ 500 $ 475
Houston, Independent School District GO
5.375%, 08/15/17 1,000 960
Houston, Independent School District GO (A)
5.500%, 08/15/09 545 548
Houston, Public Improvement GO
5.250%, 03/01/12 500 494
Houston, Water and Sewer System RB, MBIA
5.000%, 12/01/18 520 463
Lama, Consolidated Independent
School District GO
5.500%, 02/15/15 500 493
Lamar, Independent School District GO (A)
5.000%, 02/15/17 250 225
Lower Colorado River Authority RB, Ser A
5.875%, 05/15/16 1,000 1,018
San Antonio GO, Ser A
5.125%, 02/01/17 515 474
San Antonio, Electric & Gas RB,
Unrefunded Balance
5.750%, 02/01/11 580 584
5.600%, 02/01/14 1,000 1,003
San Antonio, River Authority
Improvement RB,
Channel Project, FSA
5.500%, 07/01/10 700 706
Collin County, Permanent Improvement GO, Ser A
5.400%, 02/15/14 1,025 1,012
Harris County GO
5.125%, 10/01/17 500 459
Texas State Public Finance Authority GO
5.000%, 10/01/12 500 478
Texas State Public Finance Authority GO, Ser A
5.750%, 10/01/12 750 765
Texas State Municipal Power Agency RB, FGIC
5.000%, 09/01/14 500 472
Texas State Water Development Board RB,
Revolving Fund, Series B
5.500%, 07/15/10 660 667
5.000%, 07/15/15 500 462
Texas State Water Development RB,
Revolving Fund
6.000%, 07/15/13 1,000 1,033
-----------------------------------------------------------------------------
TOTAL TEXAS 23,505
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 21
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
UTAH - 1.1%
Utah State Intermountain Power Agency,
Utah Power Supply RB, Series B
5.375%, 07/01/07 $1,000 $ 1,008
-----------------------------------------------------------------------------
TOTAL UTAH 1,008
-----------------------------------------------------------------------------
VIRGINIA - 2.0%
Newport News GO (MBIA)
5.625%, 07/01/15 795 797
Virginia, Commonwealth Transportation
Board RB, Northern Virginia
Transportation Program, Ser A
5.500%, 05/15/15 1,000 988
-----------------------------------------------------------------------------
TOTAL VIRGINIA 1,785
-----------------------------------------------------------------------------
WASHINGTON - 6.6%
Seattle, Municipal Light & Power RB
5.500%, 11/01/13 460 455
Seattle, Water System RB, Ser B
5.750%, 07/01/15 1,000 1,008
Tacoma, Electric System RB, Ser B, AMBAC
5.500%, 01/01/12 500 501
Washington State GO, Ser B
5.750%, 05/01/18 250 249
6.000%, 01/01/13 1,000 1,039
Washington State GO, Ser C
5.500%, 07/01/18 1,000 981
Washington State GO, Ser DD-14 & Ser B
5.000%, 09/01/13 750 704
Washington State Higher Education
Facility RB Gonzaga University
Project, MBIA
5.000%, 04/01/17 1,000 903
-----------------------------------------------------------------------------
TOTAL WASHINGTON 5,840
-----------------------------------------------------------------------------
WISCONSIN - 2.2%
Milwaukee GO, Corporate Purpose, Ser K
5.000%, 06/15/12 1,000 958
Wisconsin State GO, Ser A
5.600%, 05/01/15 1,000 1,000
-----------------------------------------------------------------------------
TOTAL WISCONSIN 1,958
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $87,760) 86,690
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
22 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE INVESTMENT
GRADE BOND FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MONEY MARKETS - 1.9%
Expedition Tax-Free Money Market Fund
4.250%, $1,718 $ 1,718
-----------------------------------------------------------------------------
TOTAL MONEY MARKETS
(COST $1,718) 1,718
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.3%
(COST $89,478) 88,408
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 0.7% 607
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
8,776,573 outstanding shares of beneficial interest 89,720
Portfolio Capital of Investment Shares - Class A (unlimited
authorization -- no par value) based on
48,227 outstanding shares of beneficial interest 486
Distributions in excess of Net Investment income (14)
Accumulated net realized loss on investments (107)
Net unrealized depreciation on investments (1,070)
-----------------------------------------------------------------------------
TOTAL NET ASSETS-- 100.0% $89,015
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL SHARES $10.09
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INVESTMENT SHARES - CLASS A $10.09
-----------------------------------------------------------------------------
MAXIMUM OFFERING PRICE PER SHARE--
INVESTMENT SHARES - CLASS A (1) $10.51
-----------------------------------------------------------------------------
(1) The offering price is calculated by dividing the net asset value by 1
minus the maximum sales charge of 4.00%
(A) Floating Rate Security- the rate reported on the Statement of Net Assets
is the rate in effect on April 30, 2000. The date shown is the next
scheduled reset date.
(B) Securities are held in conjunction with a letter of credit or other form of
credit enhancement from a major commercial bank or financial institution, or
government sponsored agency.
(C) Put and Demand feature- the date reported on the Statement of Net Assets is
the sooner of the Maturity date or put date.
AMBAC -- American Municipal Bond Assurance Company
FGIC -- Financial Guaranty Insurance Corporation
FHA -- Federal Housing Association
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Corporation
RB -- Revenue Bond
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 23
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT - 0.8%
BANKS - 0.8%
First Union
6.680%, 02/15/01 $3,000 $ 3,000
-----------------------------------------------------------------------------
TOTAL BANKS 3,000
-----------------------------------------------------------------------------
TOTAL CERTIFICATES OF DEPOSIT
(COST $3,000) 3,000
-----------------------------------------------------------------------------
COMMERCIAL PAPER - 72.1%
BANKS - 6.3%
First Union
5.900%, 06/08/00 5,000 4,969
SunTrust Banks
6.000%, 05/19/00 5,000 4,985
Wells Fargo
5.970%, 05/05/00 8,000 7,995
Zions Bankcorp
6.120%, 05/18/00 5,000 4,985
-----------------------------------------------------------------------------
TOTAL BANKS 22,934
-----------------------------------------------------------------------------
BROKER/DEALERS - 13.9%
Bear Stearns
5.900%, 05/05/00 5,000 4,997
5.940%, 05/10/00 5,000 4,993
Goldman Sachs
5.910%, 05/01/00 5,000 5,000
5.920%, 05/08/00 5,000 4,994
5.900%, 05/16/00 5,000 4,988
Merrill Lynch
5.900%, 05/22/00 5,000 4,983
6.140%, 07/24/00 5,000 4,928
Morgan Stanley Dean Witter
5.900%, 05/02/00 5,000 4,999
6.050%, 05/25/00 5,000 4,980
6.050%, 06/07/00 6,000 5,963
-----------------------------------------------------------------------------
TOTAL BROKER/DEALERS 50,825
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
24 APRIL 30, 2000
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
DIVERSIFIED FINANCE - 13.6%
American General Finance
5.890%, 05/19/00 $4,000 $ 3,988
6.070%, 06/13/00 5,000 4,964
6.000%, 07/10/00 5,000 4,942
Associates Corporation of North America
6.040%, 06/16/00 5,000 4,961
Ford Motor Credit
5.860%, 05/17/00 5,000 4,987
General Electric Capital
5.930%, 05/15/00 8,000 7,981
5.910%, 05/18/00 3,000 2,992
6.000%, 06/12/00 5,000 4,965
General Motors Acceptance
6.050%, 06/14/00 5,000 4,963
Toyota Motor Credit
6.000%, 05/09/00 5,000 4,993
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCE 49,736
-----------------------------------------------------------------------------
ELECTRICAL SERVICES - 11.2%
Georgia Power
6.010%, 05/04/00 5,000 4,997
6.070%, 06/09/00 5,000 4,967
National Rural Utility
6.030%, 06/23/00 7,000 6,938
5.970%, 07/10/00 2,000 1,977
6.120%, 07/19/00 7,000 6,906
Southern Cal Edison
5.840%, 05/03/00 5,000 4,998
6.020%, 05/23/00 5,000 4,982
6.050%, 06/22/00 5,000 4,956
-----------------------------------------------------------------------------
TOTAL ELECTRICAL SERVICES 40,721
-----------------------------------------------------------------------------
FUNDING CORPORATIONS - 21.1%
Centric Capital
5.920%, 05/30/00 5,000 4,976
6.050%, 05/30/00 5,000 4,976
6.240%, 06/30/00 5,311 5,256
Falcon Asset Securitization
6.040%, 05/25/00 5,000 4,980
6.230%, 06/09/00 5,000 4,966
Madison Funding
5.980%, 05/04/00 3,000 2,998
6.100%, 05/23/00 5,000 4,981
6.090%, 06/05/00 3,000 2,982
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 25
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
FUNDING CORPORATIONS (CONTINUED)
Preferred Receivables Funding
6.060%, 05/11/00 $ 6,000 $ 5,990
6.170%, 07/25/00 5,000 4,927
Receivables Capital
6.070%, 06/21/00 10,000 9,914
6.120%, 07/14/00 5,000 4,937
Riverwoods Funding
6.020%, 05/24/00 5,000 4,981
6.100%, 06/16/00 5,000 4,961
Riverwoods Funding
6.200%, 06/06/00 5,000 4,969
-----------------------------------------------------------------------------
TOTAL FUNDING CORPORATIONS 76,794
-----------------------------------------------------------------------------
HOUSEHOLD PRODUCTS - 4.6%
Clorox
6.100%, 06/28/00 6,000 5,941
6.090%, 07/06/00 7,000 6,922
6.080%, 07/07/00 4,000 3,955
-----------------------------------------------------------------------------
TOTAL HOUSEHOLD PRODUCTS 16,818
-----------------------------------------------------------------------------
LEASING & RENTING - 1.4%
International Lease Finance
6.070%, 06/26/00 5,000 4,953
-----------------------------------------------------------------------------
TOTAL LEASING & RENTING 4,953
-----------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER
(COST $262,781) 262,781
-----------------------------------------------------------------------------
CORPORATE BONDS - 14.0%
BANKS - 4.0%
First Union
6.600%, 06/15/00 1,500 1,502
6.170%, 08/08/00 5,000 5,000
NationsBank MTN
5.700%, 09/11/00 1,100 1,098
6.750%, 02/26/01 1,000 1,001
Norwest Corporation
6.750%, 05/12/00 4,855 4,857
Norwest Financial
5.500%, 03/19/01 1,000 990
-----------------------------------------------------------------------------
TOTAL BANKS 14,448
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
26 APRIL 30, 2000
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
BROKER/DEALERS - 3.0%
Bear Stearns
6.500%, 07/05/00 $2,000 $ 2,002
6.250%, 12/01/00 2,482 2,477
5.750%, 02/15/01 1,000 993
Merrill Lynch
6.700%, 08/01/00 2,000 2,004
Merrill Lynch MTN
6.380%, 07/18/00 2,500 2,503
6.020%, 04/16/01 1,000 994
-----------------------------------------------------------------------------
TOTAL BROKER/DEALERS 10,973
-----------------------------------------------------------------------------
DIVERSIFIED FINANCE - 5.0%
American General Finance MTN
6.580%, 08/07/00 1,000 1,001
Associates Corporation of North America
6.000%, 06/15/00 1,200 1,201
6.375%, 06/15/00 2,800 2,801
6.250%, 09/15/00 1,200 1,201
Associates Corporation of North America MTN
6.710%, 06/01/00 1,000 1,001
Ford Motor Credit MTN
6.840%, 06/05/00 2,365 2,367
6.000%, 02/27/01 2,000 1,988
General Motors Acceptance MTN
5.200%, 10/26/00 1,000 993
6.200%, 01/16/01 1,500 1,495
5.400%, 04/09/01 2,000 1,976
6.800%, 04/17/01 2,000 1,999
-----------------------------------------------------------------------------
TOTAL DIVERSIFIED FINANCE 18,023
-----------------------------------------------------------------------------
LEASING & RENTING - 2.0%
International Lease Finance
6.200%, 05/01/00 2,500 2,500
6.625%, 06/01/00 1,950 1,952
International Lease Finance MTN
6.180%, 06/01/00 1,000 1,000
6.630%, 06/01/00 1,000 1,001
6.210%, 02/01/01 1,000 995
-----------------------------------------------------------------------------
TOTAL LEASING & RENTING 7,448
-----------------------------------------------------------------------------
TOTAL CORPORATE BONDS
(COST $50,892) 50,892
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 27
<PAGE>
EXPEDITION MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MUTUAL FUNDS - 1.9%
Financial Square Government
Money Market Fund #465 (A)
5.830%, $ 6,908 $ 6,908
-----------------------------------------------------------------------------
TOTAL MUTUAL FUNDS
(COST $6,908) 6,908
-----------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 3.6%
Student Loan Marketing Association (A)
6.252%, 06/15/00 5,000 5,000
6.382%, 06/30/00 5,000 5,000
6.152%, 07/20/00 3,000 3,000
-----------------------------------------------------------------------------
TOTAL U.S.GOVERNMENT AGENCY OBLIGATIONS
(COST $13,000) 13,000
-----------------------------------------------------------------------------
REPURCHASE AGREEMENT - 7.7%
J.P. Morgan, Inc.,
5.67%, dated 04/28/00, matures 05/01/00,
repurchase price $28,271,000
(collateralized by U.S. Treasury
Note, par value $28,570,000, 4.625%,
matures 11/30/00: market
value $28,836,699) 28,271 28,271
-----------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $28,271) 28,271
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 100.1%
(COST $364,852) 364,852
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - (0.1%) (344)
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
147,476,677outstanding shares of beneficial interest 147,477
Portfolio Capital of Investment Service Shares
(unlimited authorization -- no par value) based on
217,030,026 outstanding shares of beneficial interest 217,030
Accumulated net realized gain on investments 1
-----------------------------------------------------------------------------
TOTAL NET ASSETS--100.0% $364,508
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INSTITUTIONAL SHARES $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- INVESTMENT SERVICE SHARES $1.00
-----------------------------------------------------------------------------
(A) Variable Rate Security -- The reported rate on the Statement of Net
Assets is the rate in effect on April 30, 2000.
MTN -- Medium Term Note
The accompanying notes are an integral part of the financial statements.
28 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MUNICIPAL BONDS - 99.2%
ALABAMA - 3.2%
Alabama State Multi-Family Housing RB,
Rime Village Hoover Project,
Series A (A) (B) (E)
5.050%, 05/08/00 $1,700 $1,700
Mobile, Industrial Development
Pollution Control RB,
M & T Chemicals Project (A) (B) (C)
5.225%, 05/08/00 1,000 1,000
-----------------------------------------------------------------------------
TOTAL ALABAMA 2,700
-----------------------------------------------------------------------------
ARIZONA - 0.1%
Apache County, Industrial
Development Authority RB,
Tucson Electrical Power (A) (B) (C)
5.000%, 05/08/00 100 100
-----------------------------------------------------------------------------
TOTAL ARIZONA 100
-----------------------------------------------------------------------------
ARKANSAS - 0.1%
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of
Beneficial Ownership
Project (A) (B) (C)
5.210%, 05/08/00 108 108
-----------------------------------------------------------------------------
TOTAL ARKANSAS 108
-----------------------------------------------------------------------------
COLORADO - 4.2%
Colorado State Health Facility RB,
Jefferson Hills Project
Series B (A) (B) (C)
5.100%, 05/08/00 1,100 1,100
SBC Metropolitan District,
GO (A) (B) (C)
4.000%, 12/01/00 1,555 1,555
Summit County, Recreational
Facilities Authority RB,
Copper Mountain Project (A) (B) (C)
4.200%, 05/08/00 885 885
-----------------------------------------------------------------------------
TOTAL COLORADO 3,540
-----------------------------------------------------------------------------
FLORIDA - 6.0%
Capital Trust Agency, Multi-Family
Housing Authority RB,
Community Loan Project (A) (B) (C)
5.180%, 05/08/00 1,700 1,700
Florida State Housing Finance
Agency RB, Multi-Family
Housing, Lakeside Project-B
(A) (B) (C)
5.200%, 05/08/00 2,600 2,600
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of
Beneficial Ownership
Project (A) (B) (C)
5.210%, 05/08/00 164 164
Orange County, Industrial
Development Authority RB,
Orlando Hawaiian Motel (A) (B) (C)
4.550%, 10/02/00 565 565
-----------------------------------------------------------------------------
TOTAL FLORIDA 5,029
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 29
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
GEORGIA - 4.1%
Cobb County, Multi-Family
Housing Authority RB,
Post Bridge Project (A) (B) (E)
5.050%, 05/08/00 $ 900 $ 900
Fulton County, Development
Authority RB, Robert W. Woodruff
Arts Center Project, (A) (B) (C)
5.100%, 05/08/00 250 250
Greystone, Tax Exempt Certificate
Trust Authority RB,
Senior Certificate of Beneficial
Ownership Project (A) (B) (C)
5.210%, 05/08/00 549 549
Macon-Bibb County, Hospital
Authority RB, Medical Center
of Central Georgia Project
(A) (B) (C)
5.100%, 05/08/00 400 400
Savannah, Multi-Family
Housing Authority RB,
Somerset Place Project,
Series A (A) (B) (E)
5.050%, 05/08/00 400 400
Walton County, Industrial
Development RB,
Walton Monroe Mills,
Series B (A) (B) (C)
5.100%, 05/08/00 900 900
-----------------------------------------------------------------------------
TOTAL GEORGIA 3,399
-----------------------------------------------------------------------------
HAWAII - 1.0%
Hawaii State Department Budget Finance RB,
Special Purpose Mortgage (A) (B) (C)
3.800%, 10/02/00 840 840
-----------------------------------------------------------------------------
TOTAL HAWAII 840
-----------------------------------------------------------------------------
ILLINOIS - 8.8%
Cook Country, Illinois Community Unit
School District Number
401 Elmwood Park, TAW
4.980%, 10/25/00 1,000 1,002
Illinois State Sales Tax RB, Series Y
5.000%, 06/15/00 690 691
Kane Country, Illinois
School District Number 131
Aurora East Side, TAW
4.970%, 09/29/00 1,500 1,503
Orland Park, Industrial Development
Authority RB,
Orland Properties
(A) (B) (C)
4.000%, 05/08/00 1,035 1,035
Radnor/East Peoria Project,
Multi-Family Housing RB (A) (B) (C)
5.350%, 05/08/00 625 625
Winnebago & Boone County,
School District No. 205 TAW
6.100%, 10/30/00 2,500 2,510
-----------------------------------------------------------------------------
TOTAL ILLINOIS 7,366
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
30 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
INDIANA - 5.3%
Fort Wayne, Industrial Economic
Development Authority RB,
Avery International Project
(A) (B) (C)
5.225%, 05/08/00 $1,000 $1,000
Mishawaka, Waterworks BAN
4.250%, 08/11/00 800 800
Muncie, Community Schools TAW
4.650%, 12/29/00 1,500 1,501
Perry Township, School Building Corporation
First Mortgage RB (C)
4.500%, 01/15/01 1,150 1,151
-----------------------------------------------------------------------------
TOTAL INDIANA 4,452
-----------------------------------------------------------------------------
IOWA - 2.0%
Iowa State Higher Education
Authority RB,
St. Ambrose University
Project (A) (B) (C)
5.150%, 05/08/00 1,500 1,500
Iowa State Finance Authority RB,
Burlington Medical Center
Project (A) (B)
6.100%, 05/01/00 150 150
-----------------------------------------------------------------------------
TOTAL IOWA 1,650
-----------------------------------------------------------------------------
KANSAS - 1.3%
Greystone, Tax Exempt
Certificate Trust Authority RB,
Senior Certificate of
Beneficial Ownership Project
(A) (B) (C)
5.210%, 05/08/00 81 81
Kansas State Development Finance
Authority RB,
Village Shalom Obligation
Group - BB (A) (B) (C)
6.000%, 05/01/00 1,000 1,000
-----------------------------------------------------------------------------
TOTAL KANSAS 1,081
-----------------------------------------------------------------------------
KENTUCKY - 2.7%
Boone County, Pollution
Control RB, Cincinnati Gas
& Electric Project (A) (B) (C)
4.300%, 05/08/00 500 500
Jefferson County, Industrial
Development Authority RB,
Belknap Project (A) (B) (C)
4.200%, 05/08/00 1,263 1,263
Lexington-Fayette Urban County,
Government Industrial Building
Authority RB, American Horse
Shows Association Project
(A) (B) (C)
5.100%, 05/08/00 525 525
-----------------------------------------------------------------------------
TOTAL KENTUCKY 2,288
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 31
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MARYLAND - 2.9%
Maryland State Health &
Higher Educational Facilities
Authority RB, Barnesville
School Issue (A) (B) (C)
5.100%, 05/08/00 $2,400 $2,400
-----------------------------------------------------------------------------
TOTAL MARYLAND 2,400
-----------------------------------------------------------------------------
MASSACHUSETTS - 0.6%
Massachusetts State Health
Facilities Authority RB,
Framingham Union Hospital
Project, Series B (D)
8.500%, 07/01/00 455 467
-----------------------------------------------------------------------------
TOTAL MASSACHUSETTS 467
-----------------------------------------------------------------------------
MICHIGAN - 6.4%
Farwell, Area School District SAN
4.500%, 09/19/00 1,100 1,101
Jackson County, Economic
Development Limited
Obligation RB, Thrifty
Leoni Project (A) (B) (C)
5.225%, 05/08/00 1,000 1,000
McDonald Tax-Exempt Mortgage
Trust (A) (B) (C)
3.450%, 05/15/00 146 146
Michigan State Strategic Fund RB,
Peachwood Center Association
(A) (B) (C)
5.200%, 05/08/00 1,730 1,730
Michigan State Job Development
Authority RB, East Lansing
Residential Project (A) (B) (C)
4.350%, 05/08/00 900 900
River Rouge, School District SAN
5.500%, 08/24/00 500 501
-----------------------------------------------------------------------------
TOTAL MICHIGAN 5,378
-----------------------------------------------------------------------------
MINNESOTA - 5.2%
Minnesota State Capital
Realty Trust RB (A) (B) (C)
5.330%, 05/08/00 3,335 3,335
St. Paul, Port Authority
Industrial RB,
Minnesota Divers Industrial
Project, Series 1 (A) (B) (C)
5.190%, 05/08/00 1,000 1,000
-----------------------------------------------------------------------------
TOTAL MINNESOTA 4,335
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
32 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
MISSOURI - 8.0%
Clayton, Industrial Development Authority RB,
Bailey Court Project (A) (B) (C)
5.300%, 05/08/00 $ 500 $ 500
Kansas City, Industrial
Development Multifamily Housing
Authority RB, Cloverset Apartment
Program (A) (B) (C)
5.400%, 05/08/00 1,505 1,505
Missouri State Health & Education
Facilities Authority RB,
Francis R. Howell III Project,
Series E,
4.250%, 09/19/00 1,000 1,002
Missouri State Health & Education
Facilities Authority RB,
Drury College Project (A) (B) (C)
6.150%, 05/01/00 800 800
Missouri State Health and
Education Facilities
Authority RB,
Saint Louis University
Project, Series B (A) (B)
6.050%, 05/01/00 800 800
Saint Louis County, Industrial
Development Authority RB,
Schnuck Markets Kirkwood
Incorporated Project, (A) (B) (C)
5.225%, 05/08/00 900 900
Saint Louis, Grantor Trust
RB, Series 1996-A, COP (A) (B) (C)
5.200%, 05/08/00 1,200 1,200
-----------------------------------------------------------------------------
TOTAL MISSOURI 6,707
-----------------------------------------------------------------------------
NEW JERSEY - 0.6%
North Hudson, New Jersey Sewer Authority
5.000%, 03/30/01 500 500
-----------------------------------------------------------------------------
TOTAL NEW JERSEY 500
-----------------------------------------------------------------------------
NEW MEXICO - 0.6%
New Mexico State Finance Authority RB,
Administrative Fee Trims
Project, Series A (A) (B) (C)
5.050%, 05/08/00 500 500
-----------------------------------------------------------------------------
TOTAL NEW MEXICO 500
-----------------------------------------------------------------------------
NEW YORK - 0.6%
New York City, Industrial
Development Agency RB,
Civic Facility Jewish
Community Center (A) (B) (C)
5.050%, 05/08/00 500 500
-----------------------------------------------------------------------------
TOTAL NEW YORK 500
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 33
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
OHIO - 6.3%
Bellevue, Hospital Facilities
RB, Hospital Project (A) (B) (C)
4.300%, 09/01/00 $ 550 $ 550
Clermont County, Economic
Development RB,
John Q Hammons Project (A) (B) (C)
4.000%, 05/01/00 790 790
Cuyahoga County, Ohio Health
Care Facilities RB,
Cleveland Neighborhood Project A (A) (B) (C)
4.050%, 06/01/00 710 710
East Muskingum, Ohio Water Authority BANS
4.320%, 06/22/00 400 400
McDonald Tax-Exempt Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 682 682
Toledo Lucas County, Cultural Facility RB,
Toledo Museum of Art Project (A) (B) (C)
5.150%, 05/08/00 1,200 1,200
Salem, Ohio BAN
3.650%, 05/26/00 900 900
-----------------------------------------------------------------------------
TOTAL OHIO 5,232
-----------------------------------------------------------------------------
OREGON - 1.9%
Clackamas County, Hospital Facilities RB,
Senior Living Facility
- Mary Woods -C (A) (B) (C)
5.250%, 05/08/00 1,600 1,600
-----------------------------------------------------------------------------
TOTAL OREGON 1,600
-----------------------------------------------------------------------------
PENNSYLVANIA - 2.3%
Clarion County, Industrial
Development Authority RB,
Meritcare Project, Series A (A) (B) (C)
5.100%, 05/08/00 200 200
McDonald Tax-Exempt
Mortgage Trust (A) (B) (C)
3.450%, 05/15/00 146 146
Montgomery County, Higher
Education & Health
Authority RB, Higher Education
& Health Loan Project,
Series 96-A, (A) (B) (C)
5.150%, 05/08/00 200 200
Philadelphia, Hospital & Higher
Education Facilities
Authority RB, Temple East
Project, Series B (A) (B) (C)
5.250%, 05/08/00 500 500
Washington County, Industrial
Development Authority RB,
Wetterau Finance Company
Project, (A) (B) (C)
5.100%, 05/08/00 900 900
-----------------------------------------------------------------------------
TOTAL PENNSYLVANIA 1,946
-----------------------------------------------------------------------------
SOUTH CAROLINA - 0.1%
Walhalla, RB, Avondale
Mills Project (A) (B) (C)
5.100%, 05/08/00 100 100
-----------------------------------------------------------------------------
TOTAL SOUTH CAROLINA 100
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
34 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
SOUTH DAKOTA - 0.5%
South Dakota State Housing
Development Authority RB,
Homeownership Mortgage, Series A
4.750%, 05/01/00 $ 450 $ 450
-----------------------------------------------------------------------------
TOTAL SOUTH DAKOTA 450
-----------------------------------------------------------------------------
TENNESSEE - 3.6%
Knox County, Industrial
Development Authority RB,
Center Square II Limited
Project (A) (B) (C)
4.950%, 05/08/00 1,250 1,250
Greystone, Tax Exempt
Certificate Trust Authority RB,
Senior Certificate of
Beneficial Ownership
Project (A) (B) (C)
5.210%, 05/08/00 614 614
Memphis, GO, Series A (A) (B)
5.100%, 05/08/00 600 600
Metropolitan Nashville &
Davidson County, Health
& Education Facilities Board RB,
Franklin Road Project (A) (B) (C)
5.100%, 05/08/00 500 500
-----------------------------------------------------------------------------
TOTAL TENNESSEE 2,964
-----------------------------------------------------------------------------
TEXAS - 9.0%
Bryan, Texas Independent School District
Public Facility RB (C)
4.300%, 02/15/01 1,045 1,045
Corpus Christi, Industrial Development Authority,
Texas Air Project (A) (B) (C)
4.300%, 08/01/00 315 315
Gulf Coast, Waste Disposal Authority RB,
Armco Incorporated Project (A) (B) (C)
5.100%, 05/08/00 1,450 1,450
Longview, Texas Water and Sewer RB (C)
7.000%, 03/01/01 150 153
Texas State Cypress-Fairbanks Independent School
District GO, Series A (C)
8.125%, 08/01/00 300 303
Texas State Health Facilities Development RB,
Series 1985-A (A) (B) (C)
5.300%, 05/08/00 1,300 1,300
Texas State Association of School Boards TAN, Series A
4.500%, 08/31/00 1,000 1,000
Waxahachie, Industrial Development Authority RB,
Container Project (A) (B) (C)
5.220%, 05/08/00 1,950 1,950
-----------------------------------------------------------------------------
TOTAL TEXAS 7,516
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 35
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
UTAH - 1.0%
West Valley, Industrial Development RB,
Johnson Matthey Project (A) (B) (C)
5.850%, 05/01/00 $ 800 $ 800
-----------------------------------------------------------------------------
TOTAL UTAH 800
-----------------------------------------------------------------------------
VIRGINIA - 0.4%
Greystone, Tax Exempt
Certificate Trust Authority RB,
Senior Certificate of
Beneficial Ownership
Project (A) (B) (C)
5.210%, 05/08/00 289 289
-----------------------------------------------------------------------------
TOTAL VIRGINIA 289
-----------------------------------------------------------------------------
WASHINGTON - 0.2%
Washington State Economic
Development Finance Authority RB,
Pioneer Human Services
Project, Series H (A) (B) (C)
6.100%, 05/01/00 100 100
Washington State Housing Finance
Community Non-Profit RB,
YMCA Columbia/Willamette
(A) (B) (C)
5.100%, 05/08/00 100 100
-----------------------------------------------------------------------------
TOTAL WASHINGTON 200
-----------------------------------------------------------------------------
WEST VIRGINIA - 4.0%
Putnam County, Industrial
Development RB,
FMC Corporation Project (A) (B) (C)
4.100%, 05/08/00 1,200 1,200
West Virginia State Hospital
Finance Authority RB,
St. Josephs Hospital Project
(A) (B) (C)
5.100%, 05/08/00 2,100 2,100
-----------------------------------------------------------------------------
TOTAL WEST VIRGINIA 3,300
-----------------------------------------------------------------------------
WISCONSIN - 5.7%
Marinette County BANS
4.750%, 07/05/00 800 800
Marshall, School District TRAN
4.120%, 08/25/00 950 950
Slinger, School District TRAN
4.040%, 09/27/00 1,000 1,000
Wisconsin State Health & Educational
Facilities Authority RB,
Milwaukee Protestant Home Project,
Series A (A) (B) (C)
5.150%, 05/08/00 2,000 2,000
-----------------------------------------------------------------------------
TOTAL WISCONSIN 4,750
-----------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
36 APRIL 30, 2000
<PAGE>
EXPEDITION TAX-FREE MONEY MARKET FUND
STATEMENT OF NET ASSETS (UNAUDITED)
FACE VALUE
DESCRIPTION AMT. (000) (000)
-----------------------------------------------------------------------------
WYOMING - 0.5%
Cheyenne County, Economic
Development RB,
Holiday Inn Project (A) (B) (C)
4.550%, 10/02/00 $ 390 $ 390
-----------------------------------------------------------------------------
TOTAL WYOMING 390
-----------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS
(COST $82,877) $82,877
-----------------------------------------------------------------------------
TOTAL INVESTMENTS - 99.2%
(COST $82,877) 82,877
-----------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET - 0.8% 667
-----------------------------------------------------------------------------
NET ASSETS:
Portfolio Capital of Institutional Shares (unlimited
authorization -- no par value) based on
13,600,684 outstanding shares of beneficial interest 13,601
Portfolio Capital of Investment Service Shares (unlimited
authorization -- no par value) based on
69,950,445 outstanding shares of beneficial interest 69,950
Accumulated net realized loss on investments (7)
=============================================================================
TOTAL NET ASSETS--100.0% $83,544
=============================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--INSTITUTIONAL SHARES $1.00
-----------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--INVESTMENT SERVICE SHARES $1.00
-----------------------------------------------------------------------------
(A) Floating Rate Security- the rate reported on the Statement of Net Assets is
the rate in effect on April 30, 2000. The date shown is the next scheduled
reset date.
(B) Put and Demand feature- the date reported on the Statement of Net Assets is
the sooner of the maturity date or put date.
(C) Securities are held in conjunction with a letter of credit or other form of
credit enhancement from a major commercial bank or financial institution, or
government sponsored agency.
(D) Pre-Refunded Security- the maturity date shown is the Pre-Refunded date.
(E) Securities are collateralized under agreement from FNMA
BAN -- Bond Anticipation Note
COP -- Certificate of Participation
GO -- General Obligation
RB -- Revenue Bond
SAN -- School Anticipation Note
TAN -- Tax Anticipation Note
TAW -- Tax Anticipation Warrant
TRAN -- Tax and Revenue Anticipation Note
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 37
<PAGE>
STATEMENT OF OPERATIONS (000) (UNAUDITED)
For the six-month period ended April 30, 2000
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND(1)
------------ -------------
INVESTMENT INCOME:
Dividends $ 1,612 $ 130
Interest 157 19
------- ------
Total investment income 1,769 149
EXPENSES:
Investment Advisory fees 1,517 42
Waiver of Investment Advisory fees -- --
Administrator fees 405 12
Waiver of Administrator fees -- --
Transfer Agent fees 37 --
Custodian fees 41 1
Directors' fees -- --
Registration fees (11) 2
Professional fees 8 4
Printing fees 16 2
Shareholder Servicing fees --
Investment Service Shares -- --
Distribution fees --
Investment Shares - Class A 7 --
Investment Shares - Class B 49 --
Amortization of organization costs 3 5
Other fees 9 1
------- ------
Net expenses 2,081 69
------- ------
Investment income -- net (312) 80
------- ------
Net realized gain (loss) on investments 44,854 1,563
Net change in unrealized appreciation
(depreciation) of investments 6,084 (596)
------- ------
NET GAIN (LOSS) ON INVESTMENTS 50,939 967
------- ------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $50,626 $ 1,047
======= =======
(1) Commenced Operations on March 3, 2000.
Amounts designated as "--" are either $0 or have been rounded to $0.
38 APRIL 30, 2000
<PAGE>
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION EXPEDITION
INVESTMENT TAX-FREE INVESTMENT EXPEDITION TAX-FREE
GRADE BOND GRADE BOND MONEY MARKET MONEY MARKET
FUND FUND(1) FUND FUND
---------- ------------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ -- $ -- $ -- $ --
Interest 3,729 719 10,316 1,661
-------- -------- -------- -------
Total investment income 3,729 719 10,316 1,661
EXPENSES:
Investment Advisory fees 388 70 702 83
Waiver of Investment Advisory fees (115) (14) (380) (10)
Administrator fees 119 11 263 64
Waiver of Administrator fees -- -- -- --
TRANSFER AGENT FEES 47 6 37 17
Custodian fees 12 3 35 8
Directors' fees 1 1 9 1
Registration fees 26 2 54 5
Professional fees 5 2 15 6
Printing fees 5 5 12 5
Shareholder Servicing fees --
Investment Service Shares 2 -- 259 81
Distribution fees--
Investment Shares - Class A 8 -- -- --
Investment Shares - Class B 1 -- -- --
Amortization of organization costs 1 5 -- 2
Other fees 2 -- 8 3
-------- -------- -------- -------
Net expenses 502 91 1,014 265
-------- -------- -------- -------
Investment income-- net 3,227 628 9,302 1,396
-------- -------- -------- -------
Net realized gain (loss) on investments (825) (107) -- --
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) OF INVESTMENTS (1,126) 956 -- --
-------- -------- -------- -------
NET GAIN (LOSS) ON INVESTMENTS (1,951) 849 -- --
-------- -------- -------- -------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,276 $ 1,477 $ 9,302 $ 1,396
======== ======== ======== =======
<FN>
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 39
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
For the six-month period ended April 30, 2000 (unaudited) and the year ended
October 31, 1999
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
--------------------- -------------
Period Year Period
Ended Ended Ended
4/30/00 10/31/99 4/30/00(2)
--------- ---------- ----------
<S> <C> <C> <C>
OPERATIONS:
Investment income-- net $ (312) $ 29 $ 80
Net realized gain (loss) on investments 44,854 41,739 1,563
Net change in unrealized appreciation
(depreciation) of investments 6,084 45,700 (596)
-------- -------- --------
Net increase (decrease) in net assets
resulting from operations 50,626 87,468 1,047
-------- -------- --------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares -- (100) (34)
Investment Shares - Class A/Investment
Service Shares -- --
Investment Shares - Class B -- -- --
Net realized gain on investments:
Institutional Shares (40,733) (15,469) --
Investment Shares - Class A/Investment
Service Shares (558) (161) --
Investment Shares - Class B (966) (2) --
-------- -------- --------
Total distributions (42,257) (15,732) (34)
-------- -------- --------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds in Connection with the Acquisition
of Common Trust Fund Assets -- -- 35,971
Proceeds from sales 30,433 51,570 58
Reinvestment of distributions 40,656 15,498 --
Payments for redemptions (35,715) (57,381) (1,470)
-------- -------- --------
Increase (decrease) in net assets from Institutional
Shares transactions 35,374 9,687 34,559
-------- -------- --------
Investment Shares - Class A and Investment Service
Shares (respectively):
Proceeds from sales 2,096 3,389 30
Reinvestment of distributions 541 153 --
Payments for redemptions (333) (1,433) --
-------- -------- --------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions 2,304 2,109 30
-------- -------- --------
Investment Shares - Class B
Proceeds from sales 4,394 7,712 127
Reinvestment of distributions 960 2 --
Payments for redemptions (742) (239) --
-------- -------- --------
Increase (decrease) in net assets from
Investment Shares - Class B 4,612 7,475 127
-------- -------- --------
Increase (decrease) in net assets from
capital share transactions 42,290 19,271 34,716
-------- -------- --------
Total increase (decrease) in net assets 50,659 91,007 35,729
-------- -------- --------
NET ASSETS AT BEGINNING OF PERIOD 376,088 285,081 --
-------- -------- --------
NET ASSETS AT END OF PERIOD $426,747 $376,088 $ 35,729
======== ======== ========
</TABLE>
(1) See note 4 in the notes to financial statements for additional information.
(2) Commenced Operations on March 3, 2000.
Amounts designated as "--" are either $0 or have been rounded to $0.
40 APRIL 30, 2000
<PAGE>
<TABLE>
<CAPTION>
EXPEDITION
EXPEDITION TAX-FREE
INVESTMENT GRADE INVESTMENT GRADE
-------------------- -------------------
Period Year Period
Ended Ended Ended
4/30/00 10/31/99 4/30/00(2)
--------- ---------- ------------
<S> <C> <C> <C>
OPERATIONS:
Investment income-- net $ 3,227 $ 5,457 $ 628
Net realized gain (loss) on investments (825) (89) (107)
Net change in unrealized appreciation
(depreciation) of investments (1,126) (5,544) 956
-------- -------- ---------
Net increase (decrease) in net assets resulting
from operations 1,276 (176) 1,477
-------- -------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares (3,048) (5,030) (641)
Investment Shares - Class A/Investment Service Shares 14,240 (416) (1)
Investment Shares - Class B (4) (3) --
Net realized gain on investments:
Institutional Shares -- -- --
Investment Shares - Class A/Investment Service Shares -- -- --
Investment Shares - Class B -- -- --
-------- -------- ---------
Total distributions (3,225) (5,449) (642)
-------- -------- ---------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds in Connection with the Acquisition
of Common Trust Fund Assets 38,701 -- 93,207
Proceeds from sales 14,240 18,496 1,281
Reinvestment of distributions 1,737 3,048 1
Payments for redemptions (18,051) (22,452) (6,795)
-------- -------- ---------
Increase (decrease) in net assets from Institutional
Shares transactions 36,627 (908) 87,694
-------- -------- ---------
Investment Shares - Class A and Investment Service
Shares (respectively):
Proceeds from sales 118 353 485
Reinvestment of distributions 113 265 1
Payments for redemptions (1,072) (3,221) --
-------- -------- ---------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions (841) (2,603) 486
-------- -------- ---------
Investment Shares - Class B
Proceeds from sales 81 237 --
Reinvestment of distributions 4 3 --
Payments for redemptions (87) (21) --
-------- -------- ---------
Increase (decrease) in net assets from
Investment Shares - Class B (2) 219 --
-------- -------- ---------
Increase (decrease) in net assets from
capital share transactions 35,784 (3,292) 88,180
-------- -------- ---------
Total increase (decrease) in net assets 33,835 (8,917) 89,015
-------- -------- ---------
NET ASSETS AT BEGINNING OF PERIOD 106,382 115,299 --
-------- -------- ---------
NET ASSETS AT END OF PERIOD $140,217 $106,382 $ 89,015
======== ======== =========
</TABLE>
<TABLE>
<CAPTION>
EXPEDITION
EXPEDITION TAX-FREE
MONEY MARKET MONEY MARKET
FUND FUND
----------------------- ----------------------
Period Year Period Year
Ended Ended Ended Ended
4/30/00 10/31/99 4/30/00 10/31/99
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-- net $ 9,302 $ 13,895 $ 1,396 $ 2,064
Net realized gain (loss) on investments -- (2) -- (7)
Net change in unrealized appreciation
(depreciation) of investments -- -- -- --
-------- --------- --------- ---------
Net increase (decrease) in net assets resulting
from operations 9,302 13,893 1,396 2,057
-------- --------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Investment income -- net:
Institutional Shares (3,921) (5,844) (351) (466)
Investment Shares - Class A/Investment Service Shares (5,381) (8,050) (1,045) (1,598)
Investment Shares - Class B -- -- -- --
Net realized gain on investments:
Institutional Shares -- -- -- --
Investment Shares - Class A/Investment Service Shares -- -- -- --
Investment Shares - Class B -- -- -- --
-------- --------- --------- ---------
Total distributions (9,302) (13,894) (1,396) (2,064)
-------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS (1):
Institutional Shares:
Proceeds in Connection with the Acquisition
of Common Trust Fund Assets -- -- -- --
Proceeds from sales 340,258 507,343 12,636 48,856
Reinvestment of distributions 156 284 -- --
Payments for redemptions (323,733) (479,528) (27,910) (19,981)
-------- --------- --------- ---------
Increase (decrease) in net assets from Institutional
Shares transactions 16,681 28,099 (15,274) 28,875
-------- --------- --------- ---------
Investment Shares - Class A and Investment Service
Shares (respectively):
Proceeds from sales 344,572 637,445 92,674 158,834
Reinvestment of distributions 586 1,324 12 14
Payments for redemptions (314,560) (595,247) (82,631) (163,495)
-------- --------- --------- ---------
Increase (decrease) in net assets from
Investment Shares - Class A and Investment
Service Shares (respectively) transactions 30,598 43,522 10,055 (4,647)
-------- --------- --------- ---------
Investment Shares - Class B
Proceeds from sales -- -- -- --
Reinvestment of distributions -- -- -- --
Payments for redemptions -- -- -- --
-------- --------- --------- ---------
Increase (decrease) in net assets from
Investment Shares - Class B -- -- -- --
-------- --------- --------- ---------
Increase (decrease) in net assets from
capital share transactions 47,279 71,621 (5,219) 24,228
-------- --------- --------- ---------
Total increase (decrease) in net assets 47,279 71,620 (5,219) 24,221
-------- --------- --------- ---------
NET ASSETS AT BEGINNING OF PERIOD 317,229 245,609 88,763 64,542
-------- --------- --------- ---------
NET ASSETS AT END OF PERIOD $364,508 $ 317,229 $ 83,544 $ 88,763
======== ========= ========= =========
<FN>
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
APRIL 30, 2000 41
<PAGE>
FINANCIAL HIGHLIGHTS
For the six-month period ended April 30, 2000 (unaudited) and the periods ended
October 31, For a Share Outstanding Throughout each Period.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
NET REALIZED AND DISTRIBUTIONS NET ASSET
ASSET VALUE, NET UNREALIZED FROM NET DISTRIBUTIONS VALUE,
BEGINNING INVESTMENT GAINS OR (LOSSES) INVESTMENT FROM END OF
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS PERIOD
------------ ---------- -------------- ------------- ------------- ---------
------------------------------------------------------------------------------------------------------------------
EQUITY FUND
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Institutional Shares
2000 $13.09 (0.01) 1.66 -- (1.49) $13.25
1999 10.55 -- 3.13 -- (0.59) 13.09
1998 9.39 0.06 1.67 (0.06) (0.51) 10.55
1997(1) 10.00 0.02 0.25 (0.02) (0.86) 9.39
Investment Shares - Class A
2000 $13.06 0.67 0.96 -- (1.49) $13.20
1999 10.58 (0.03) 3.10 -- (0.59) 13.06
1998(2) 9.65 0.04 1.45 (0.05) (0.51) 10.58
Investment Shares - Class B
2000 $12.96 (0.04) 1.60 -- (1.49) $13.03
1999(3) 10.82 (0.04) 2.77 -- (0.59) 12.96
------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000(8) $10.00 0.02 0.28 (0.01) -- $10.29
Investment Shares - Class A
2000(9) $ 9.78 0.02 0.50 (0.01) -- $10.29
Investment Shares - Class B
2000(10) $ 9.82 0.01 0.46 (0.01) -- $10.28
------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 9.65 0.26 (0.17) (0.26) -- $ 9.48
1999 10.15 0.49 (0.50) (0.49) -- 9.65
1998 9.85 0.51 0.30 (0.51) -- 10.15
1997(1) 9.69 0.19 0.16 (0.19) -- 9.85
Investment Shares - Class A
2000 $ 9.64 0.24 (0.17) (0.24) -- $ 9.47
1999 10.15 0.47 (0.51) (0.47) -- 9.64
1998 9.85 0.49 0.30 (0.49) -- 10.15
1997 9.77 0.53 0.08 (0.53) -- 9.85
1996 9.92 0.58 (0.15) (0.58) -- 9.77
1995 9.54 0.63 0.38 (0.63) -- 9.92
Investment Shares - Class B
2000 $ 9.64 0.21 (0.16) (0.21) -- $ 9.48
1999(3) 10.06 0.38 (0.17) (0.63) -- 9.64
------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE BOND FUND
------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000(8) $10.00 0.07 0.09 (0.07) -- $10.09
Investment Shares - Class A
2000(9) $10.05 0.06 0.04 (0.06) -- $10.09
------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 1.00 0.03 -- (0.03) -- $ 1.00
1999 1.00 0.05 -- (0.05) -- 1.00
1998 1.00 0.05 -- (0.05) -- 1.00
1997(4) 1.00 0.02 -- (0.02) -- 1.00
Investment Service Shares
2000 $ 1.00 0.03 -- (0.03) -- $ 1.00
1999 1.00 0.05 -- (0.05) -- 1.00
1998 1.00 0.05 -- (0.05) -- 1.00
1997(5) 1.00 0.08 -- (0.08) -- 1.00
1996 1.00 0.04 -- (0.04) -- 1.00
1995 1.00 0.05 -- (0.05) -- 1.00
1994 1.00 0.03 -- (0.03) -- 1.00
------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 $ 1.00 0.02 -- (0.02) -- $ 1.00
1999(6) 1.00 0.02 -- (0.02) -- 1.00
Investment Service Shares
2000 $ 1.00 0.02 -- (0.02) -- $ 1.00
1999 1.00 0.03 -- (0.03) -- 1.00
1998(7) 1.00 0.01 -- (0.01) -- 1.00
<FN>
* Annualized
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on June 13, 1997.
(2) Commenced operations on November 24, 1997.
(3) Commenced operations on November 16, 1998.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
42 APRIL 30, 2000
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
RATIO OF RATIO OF NET
RATIO OF NET EXPENSES TO INVESTMENT (LOSS) TO
RATIO OF INVESTMENT AVERAGE NET AVERAGE NET ASSETS
NET ASSETS EXPENSES INCOME (LOSS) ASSETS (EXCLUDING (EXCLUDING
TOTAL END OF TO AVERAGE TO AVERAGE WAIVERS AND WAIVERS AND PORTFOLIO
RETURN+ PERIOD (000) NET ASSETS NET ASSETS REIMBURSEMENTS) REIMBURSEMENTS) TURNOVER RATE
------- ------------ ---------- ---------- -------------- -------------- -------------
---------------------------------------------------------------------------------------------------------------------------------
EQUITY FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Institutional Shares
2000 14.41% $407,152 1.00%* (0.13)%* 1.00%* (0.13)%* 40.14%
1999 30.87% 363,694 1.05% 0.04% 1.05% 0.04% 90.76%
1998 19.18% 283,170 1.08% 0.38% 1.11% 0.35% 54.19%
1997(1) 2.96% 237,567 1.09%* 0.53%* 1.09%* 0.53%* 64.68%
Investment Shares - Class A
2000 9.71% $ 7,095 1.25%* (0.38%)* 1.25%* (0.38%)* 40.14%
1999 30.16% 4,688 1.30% (0.21%) 1.30% (0.21%) 90.76%
1998(2) 16.16% 1,911 1.29%* (0.14%)* 1.37%* (0.22%)* 54.19%
Investment Shares - Class B
2000 8.80% $ 12,500 2.00%* (1.13%)* 2.00%* (1.13%)* 40.14%
1999(3) 26.31% 7,706 2.05%* (0.95%)* 2.05%* (0.95%)* 90.76%
-------------------------------------------------------------------------------------------------------------------------------
EQUITY INCOME FUND
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000(8) 4.24% $ 35,571 1.29%* 1.49%* 1.29%* 1.49%* 29.79%
Investment Shares - Class A
2000(9) 6.50% $ 31 1.56%* 1.44%* 1.56%* 1.45%* 29.79%
Investment Shares - Class B
2000(10) (0.12)% $ 127 2.47%* 0.78%* 2.47%* 0.84%* 29.79%
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT GRADE BOND FUND
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 1.00% $133,695 0.83%* 5.44%* 1.02%* 5.25%* 43.04%
1999 (0.06%) 98,889 0.90% 5.00% 1.15% 4.75% 39.57%
1998 8.43% 104,953 0.94% 5.11% 1.13% 4.92% 32.93%
1997(1) 3.49% 101,224 1.10%* 5.05%* 1.11%* 5.04%* 69.09%
Investment Shares - Class A
2000 0.87% $ 6,313 1.08%* 5.12%* 1.28%* 4.92%* 43.04%
1999 (0.41%) 7,279 1.15% 4.75% 1.40% 4.50% 39.57%
1998 8.25% 10,346 1.10% 4.95% 1.25% 4.80% 32.93%
1997 6.41% 23,630 1.13% 5.46% 1.56% 5.03% 69.09%
1996 4.44% 44,552 1.08% 5.90% 1.58% 5.40% 77.00%
1995 10.94% 63,521 1.04% 6.51% 1.51% 6.04% 79.00%
Investment Shares - Class B
2000 0.50% $ 209 1.83%* 4.38%* 2.04%* 4.17%* 43.04%
1999(3) 2.10% 214 1.90%* 4.07%* 2.15%* 3.82%* 39.57%
-------------------------------------------------------------------------------------------------------------------------------
TAX-FREE INVESTMENT GRADE
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000(8) 1.39% $88,528 0.66%* 4.55%* 0.76%* 4.45%* 15.00%
Investment Shares - Class A
2000(9) 0.87% $ 487 0.96%* 4.72%* 1.07%* 4.61%* 15.00%
-------------------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 2.72% $147,478 0.43%* 5.45%* 0.65%* 5.23%* --
1999 4.83% 130,798 0.43% 4.73% 0.77% 4.39% --
1998 5.33% 102,699 0.43% 5.18% 0.66% 4.95% --
1997(4) 5.26% 48,006 0.43%* 5.22%* 0.70%* 4.95%* --
Investment Service Shares
2000 2.60% $217,030 0.68%* 5.20%* 0.90%* 4.98%* --
1999 4.56% 186,431 0.68% 4.47% 1.02% 4.13% --
1998 5.07% 142,910 0.68% 4.95% 0.91% 4.73% --
1997(5) 4.97% 147,651 0.73% 4.84% 0.85% 4.72% --
1996 4.95% 136,666 0.71% 4.85% 0.71% 4.85% --
1995 5.51% 141,434 0.56% 5.38% 0.66% 5.28% --
1994 3.29% 158,367 0.75% 3.26% 0.79% 3.22% --
-------------------------------------------------------------------------------------------------------------------------------
TAX-FREE MONEY MARKET FUND
-------------------------------------------------------------------------------------------------------------------------------
Institutional Shares
2000 1.73% $ 13,600 0.43%* 3.44%* 0.46%* 3.41%* --
1999(6) 1.69% 28,874 0.43%* 3.06%* 0.89%* 2.60%* --
Investment Service Shares
2000 1.60% $ 69,944 0.68%* 3.22%* 0.70%* 3.20%* --
1999 2.77% 59,889 0.68% 2.73% 0.95% 2.46% --
1998(7) 1.33% 64,542 0.68%* 2.95%* 0.78%* 2.85%* --
<FN>
(4) Commenced operations on June 9, 1997.
(5) During 1997, the Starburst Money Market Trust Shares were renamed the Expedition Money Market Investment Service Shares.
(6) Commenced operations on April 14, 1999.
(7) Commenced operations on May 20, 1998.
(8) Commenced operations on March 3, 2000.
(9) Commenced operations on March 13, 2000.
(10)Commenced operations on March 16, 2000.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
APRIL 30, 2000 43
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(1) ORGANIZATION
The Expedition Funds (the "Trust") are registered under the Investment Company
Act of 1940, as amended (the "1940 Act") as an open-end, management investment
company offering the following Funds as of April 30, 2000: the Expedition Equity
Fund (the "Equity Fund"), the Expedition Equity Income Fund (the "Equity Income
Fund"), the Expedition Investment Grade Bond Fund (formerly Expedition Bond
Fund) (the "Investment Grade Bond Fund"), the Expedition Tax-Free Investment
Grade Bond Fund (the "Tax-Free Investment Grade Bond Fund"), the Expedition
Money Market Fund (the "Money Market Fund"), and the Expedition Tax-Free Money
Market Fund (the "Tax-Free Money Market Fund") (collectively, the "Funds"). The
Expedition Equity, Equity Income, Investment Grade Bond, and Tax-Free Investment
Grade Bond are registered to offer three classes of shares, while both the Money
Market and Tax-Free Money Market Funds are registered to offer two classes of
shares. The Equity, Equity Income, Investment Grade Bond, and Tax-Free
Investment Grade Bond Funds offer Institutional Shares, Investment Shares -
Class A (formerly Investment Shares) and Investment Shares - Class B (formerly
Class B Shares) (currently the Tax-Free Investment Grade Bond Fund Investment
Shares - Class B is not operational), and the Money Market and Tax-Free Money
Market Funds offer Institutional Shares and Investment Service Shares. The
assets of each Fund are segregated and a shareholder's interest is limited to
the funds in which shares are held. The investment objectives, policies, and
strategies of the Expedition Funds are described in their prospectuses.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Funds which are in conformity with generally accepted accounting
principles.
SECURITY VALUATION -- Investment securities held by the Money Market Fund and
the Tax-Free Money Market Fund are stated at amortized cost, which approximates
market value. Under this valuation method, purchase discounts and premiums are
accreted and amortized ratably to maturity and are included in interest income.
Investments in securities held in the Equity, Equity Income, Investment Grade
Bond, and Tax-Free Investment Grade Bond Funds are valued as follows: equity
securities that are traded on a national securities exchange (or reported on the
NASDAQ national market system) are stated at the last quoted sales price if
readily available for such equity securities on each business day; other equity
securities traded in the over-the-counter market and listed equity securities
for which no sale was reported on that date are stated at the
44 APRIL 30, 2000
<PAGE>
last quoted bid price. Debt obligations exceeding sixty days to maturity for
which market quotations are readily available are valued at the mean of the most
recently quoted bid and asked price. Debt obligations with sixty days or less
remaining until maturity may be valued at their amortized cost. Restricted
securities for which quotations are not readily available are valued at fair
value using methods determined in good faith under general supervision of the
Board of Trustees (the "Trustees").
REPURCHASE AGREEMENTS -- It is the policy of the Funds to require the custodian
bank to take possession, to have legally segregated in the Federal Reserve Book
Entry System, or to have segregated within the custodian bank's vault, all
securities held as collateral under repurchase agreement transactions.
Additionally, procedures have been established by the Funds to monitor, on a
daily basis, the market value of each repurchase agreement's collateral to
ensure that the value of collateral at least equals the repurchase price to be
paid under the repurchase agreement transaction.
The Funds will only enter into repurchase agreements with banks and other
recognized financial institutions, such as broker/dealers, which are deemed by
the Funds' Investment Advisor (the "Advisor") to be creditworthy pursuant to the
guidelines and/or standards reviewed or established by the Trustees. Risks may
arise from the potential inability of counterparties to honor the terms of the
repurchase agreement. Accordingly, the Funds could receive less than the
repurchase price on the sale of collateral securities.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold, adjusted for the accretion
and amortization of purchase discounts, and premiums during the respective
holding periods. Interest income is recorded on the accrual basis; dividend
income is recorded on the ex-dividend date.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment
income for the Investment Grade Bond Fund, the Tax-Free Investment Grade Bond
Fund, the Money Market Fund and the Tax-Free Money Market Fund are declared
daily and paid monthly. The Equity Fund and the Equity Income Fund declare and
pay dividends from net investment income quarterly. Any net realized capital
gains will be distributed at least annually for all Funds. Dividends and
distributions are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences are
primarily due to differing treatments for deferral of wash sales losses and
post-October losses.
APRIL 30, 2000 45
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEDERAL TAXES -- It is each Fund's policy to comply with the provisions of the
Internal Revenue Code of 1986 (Subchapter M), as amended (the "Code"),
applicable to regulated investment companies and to distribute to shareholders
each year substantially all of its income. Accordingly, no provisions for
federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Funds may engage in
when-issued or delayed delivery transactions. The Funds record when-issued
securities on the trade date and maintain security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased upon settlement. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
USE OF ESTIMATES -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
income reported in the financial statements. Actual results could differ from
those estimated.
CLASSES -- Class specific expenses are borne by that class. Income, non-class
specific expenses, and realized/unrealized gains and losses are allocated to the
respective classes on the basis of the relative daily net assets.
(3) INVESTMENT ADVISORY, ADMINISTRATION, DISTRIBUTION AND SERVICE AGREEMENTS
INVESTMENT ADVISORY FEE -- Compass Bank, the Trust's Investment Advisor,
receives for its services annual advisory fees equal to 0.75% of each of the
Equity and Equity Income Funds', 0.50% of each of the Investment Grade Bond and
Tax-Free Investment Grade Bond Funds' and 0.40% of each of the Money Market and
the Tax-Free Money Market Funds' average daily net assets. The Advisor may
voluntarily choose to waive any portion of its fee. The Advisor can modify or
terminate these voluntary waivers at any time at its sole discretion.
INVESTMENT SUB-ADVISOR -- Weiss, Peck & Greer, L.L.C. ("WPG") serves as the
Tax-Free Money Market Fund's investment sub-advisor under a sub-advisory
agreement (the "Sub-Advisory Agreement") with the Advisor. Under the
Sub-Advisory Agreement, WPG invests the assets of the Fund on a daily basis, and
continuously administers the investment program of the Fund.
46 APRIL 30, 2000
<PAGE>
WPG is entitled to a fee which is paid by the Advisor and which is calculated
daily and paid monthly, at an annual rate of: .075% of the Fund's average daily
net assets up to $150 million; .05% of the next $350 million of the Fund's
average daily net assets, .04% of the next $500 million in average daily net
assets; and .03% of the Fund's average daily net assets over $1 billion.
ADMINISTRATIVE FEE -- The Trust and SEI Investments Mutual Funds Services (the
"Administrator"), a Delaware business trust, are parties to an administration
agreement (the "Agreement") dated June 9, 1997, under which the Administrator
provides the Trust with certain legal, accounting, and shareholder services for
an annual fee of .20% of the Funds' average daily net assets. The Administrator
may voluntarily waive its fee, subject to termination at any time by the
Administrator, to the extent necessary to limit the total operating expenses of
a Fund.
DISTRIBUTION FEES -- The Trust and SEI Investments Distribution Co. (the
"Distributor") are parties to a Distribution Agreement dated June 9, 1997. The
Equity, Equity Income, Investment Grade Bond, and Tax-Free Investment Grade Bond
Funds have adopted Distribution Plans for Investment Shares - Class A and
Investment Shares -Class B. Under the terms of each Plan the Funds pay the
Distributor a monthly distribution fee at an annual rate of 0.25% of the daily
net assets of the Class A Shares and 1.00% of the Class B Shares, which may be
used by the Distributor to provide compensation for sales support and
distribution activities.
The Money Market and Tax-Free Money Market Funds have adopted and entered into a
Shareholder Service Plan and Agreement with the Distributor. Each Fund pays the
Distributor a monthly shareholder servicing fee at an annual rate of 0.25% of
the average daily net assets of each Fund's Investment Service Shares, which may
be used by the Distributor to provide compensation to service providers that
have agreed to provide certain shareholders support services for their customers
who own Investment Service Shares of the Funds.
CUSTODIAN FEES -- Compass Bank serves as the Funds' custodian. Their fee is
based on a rate of 0.02% of each Fund's average daily net assets for the period,
plus out-of-pocket expenses.
APRIL 30, 2000 47
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(4) CAPITAL SHARE TRANSACTIONS (000)
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION
EQUITY EQUITY INCOME
FUND FUND
----------------------- --------------
Period Ended Year Ended Period Ended
4/30/00 10/31/99 4/30/00(1)
------------ ---------- ------------
<S> <C> <C> <C>
Institutional Shares:
Shares issued in connection with the
Aquisition of Commom Trust Fund Assets -- -- 3,595
Shares issued 2,365 4,230 6
Shares issued in lieu of cash distributions 3,297 1,439 --
Shares redeemed (2,727) (4,704) (144)
----- ----- -----
Total Institutional Shares transactions 2,935 965 3,457
----- ----- -----
Investment Shares - Class A and
Investment Service Shares (respectively):
Shares issued 161 282 3
Shares issued in lieu of cash distributions 44 14 --
Shares redeemed (26) (118) --
----- ----- -----
Total Investment Shares - Class A and
Investment Service Shares
(respectively) transactions 179 178 3
----- ----- -----
Investment Shares - Class B:
Shares issued 343 614 12
Shares issued in lieu of cash distributions 79 -- --
Shares redeemed (58) (19) --
----- ----- -----
Total Investment Shares - Class B transactions 364 595 12
----- ----- -----
NET INCREASE (DECREASE)
FROM SHARE TRANSACTIONS 3,478 1,738 3,472
===== ===== =====
<FN>
(1) Commenced operations on March 3, 2000.
</FN>
</TABLE>
(5) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended April 30, 2000, were as follows (000):
<TABLE>
<CAPTION>
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
------ ------ ---------- ----------
<S> <C> <C> <C> <C>
Purchases
Government......... $ -- $ -- $67,751 $95,054
Other.............. $161,364 $ 9,461 $22,720 $10,000
Sales
Government......... $ -- $ -- $26,554 $ --
Other.............. $161,083 $10,415 $20,465 $13,029
</TABLE>
48 APRIL 30, 2000
<PAGE>
<TABLE>
<CAPTION>
EXPEDITION EXPEDITION TAX-FREE EXPEDITION EXPEDITION
INVESTMENT GRADE INVESTMENT GRADE MONEY MARKET TAX-FREE MONEY
BOND FUND BOND FUND FUND MARKET FUND
----------------------- ----------------- ----------------------- -----------------------
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended Year Ended
4/30/00 10/31/99 4/30/00(1) 4/30/00 10/31/99 4/30/00 10/31/99
------------ ---------- ------------ ------------ ---------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Institutional Shares:
Shares issued in connection with the
Aquisition of Commom Trust Fund Assets 4,082 -- 9,321 -- -- -- --
Shares issued 1,492 1,876 127 340,258 507,343 12,636 48,856
Shares issued in lieu of
cash distributions183 310 -- 156 284 -- --
Shares redeemed (1,900) (2,271) (671) (323,733) (479,528) (27,910) (19,981)
----- ---- ----- -------- -------- -------- -------
Total Institutional Shares transactions 3,857 (85) 8,777 16,681 28,099 (15,274) 28,875
----- ---- ----- -------- -------- -------- -------
Investment Shares - Class A and
Investment Service Shares (respectively):
Shares issued 12 35 48 344,572 637,445 92,674 158,834
Shares issued in lieu of
cash distributions 12 27 -- 586 1,324 12 14
Shares redeemed (112) (327) -- (314,560) (595,247) (82,631) (163,495)
----- ---- ----- -------- -------- -------- --------
Total Investment Shares - Class A and
Investment Service Shares
(respectively) transactions (88) (265) 48 30,598 43,522 10,055 (4,647)
----- ---- ----- -------- -------- -------- --------
Investment Shares - Class B:
Shares issued 8 24 -- -- -- -- --
Shares issued in lieu of
cash distributions 1 -- -- -- -- -- -- --
Shares redeemed (9) (2) -- -- -- -- --
----- ---- ----- -------- -------- -------- --------
Total Investment Shares -
Class B transactions -- 22 -- -- -- -- --
----- ---- ----- -------- -------- -------- --------
NET INCREASE (DECREASE)
FROM SHARE TRANSACTIONS 3,769 (328) 8,825 47,279 71,621 (5,219) 24,228
===== ==== ===== ======== ======== ======== ========
</TABLE>
At April 30, 2000, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at April 30, 2000, are as follows (000):
TAX-FREE
EQUITY INVESTMENT INVESTMENT
EQUITY INCOME GRADE BOND GRADE BOND
FUND FUND FUND FUND
------ ------ ---------- -----------
Aggegate gross unrealized
appreciation....... $103,816 $ 4,624 $ 165 $ 410
Aggegate gross unrealized
depreciation....... (12,079) (2,567) (3,993) (1,480)
-------- -------- ------- -------
Net unrealized
appreciation
(depreciation)..... $ 91,737 $ 2,057 $(3,828) $(1,070)
======== ======== ======= =======
APRIL 30, 2000 49
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(6) ORGANIZATION COSTS AND TRANSACTIONS
WITH AFFILIATES
Organization costs have been capitalized by the Funds and are being amortized
over sixty months commencing with the reorganization. In the event that any of
the initial shares of a Fund are redeemed by any holder thereof during the
period that such Fund is amortizing its organizational costs, the redemption
proceeds payable to the holder thereof by the Fund will be reduced by the
unamortized organizational costs in the same ratio as the number of initial
shares being redeemed bears to the number of initial shares outstanding at the
time of redemption.
Certain officers of the Trust are also officers of the Administrator and the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
(7) COMMON TRUST FUND CONVERSIONS
On March 3, 2000, certain Common Trust Funds of Compass Bank and certain of its
affiliates were converted into the Expedition Funds. The Funds involved in the
conversion are as follows:
COMMON TRUST FUND EXPEDITION FUND
------------------ ----------------
Equity Income Trust Equity Income
Investment Grade Tax-Free Bond Tax-Free Investment Grade Bond
Long Term Investment Grade Tax-Free Bond Tax-Free Investment Grade Bond
Tax-Free Bond Tax-Free Investment Grade Bond
Investment Grade Bond Trust Investment Grade Bond
Quality Grade Bond Trust Investment Grade Bond
50 APRIL 30, 2000
<PAGE>
The assets, which consisted of securities, and related receivables less
liabilities were converted on a tax-free basis. The net assets of each fund
(including net unrealized Appreciation/(Depreciation) immediately before the
conversion were as follows (000):
UNREALIZED
APPRECIATION/ NET
COMMON TRUST FUND ASSETS (DEPRECIATION) ASSETS
------------------ ------ ------------ ------
Equity Income Trust 35,622 (2,304) 33,318
Investment Grade Tax-Free Bond 55,799 2,300 58,099
Long Term Investment Grade Tax-Free Bond 12,496 (718) 11,778
Tax-Free Bond 25,846 (2,534) 23,312
Investment Grade Bond Trust 26,385 (157) 26,225
Quality Grade Bond Trust 12,692 (216) 12,476
The value and number of shares issued in exchange for each Common Trust Fund's
assets and shares outstanding in the tax-free conversions are included in the
capital share transactions of the Institutional Class in the Statement of
Changes in Net Assets for each respective fund.
APRIL 30, 2000 51
<PAGE>
Notes
<PAGE>
[Logo omitted]
INVESTMENT ADVISOR AND CUSTODIAN:
Compass Bank
15 South 20th Street
Birmingham, Alabama 35233
DISTRIBUTOR:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
TRANSFER AGENT:
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
SERVICING AGENT:
Boston Financial Data Services, Inc.
Two Heritage Drive
Quincy, Massachusetts 02171
INDEPENDENT AUDITORS:
Deloitte & Touche LLP
117 Campus Drive
Princeton, New Jersey 08540
COUNSEL:
Morgan, Lewis & Bockius LLP
1800 M Street, N.W.
Washington, D.C. 20036
EXP-F-016-03
